Erebor, a financial services firm supported by billionaire Peter Thiel, has recently received approval from US regulators to function within the country. This development is significant as it seeks to address the gap left by the 2023 collapse of Silicon Valley Bank.

As highlighted in a Financial Times report, Erebor has acquired a preliminary banking charter but must navigate various compliance and security challenges before commencing operations, a process that could extend over several months.

The Office of the Comptroller of the Currency (OCC) confirmed this approval. Comptroller Jonathan V. Gould affirmed that “permissible digital asset activities […] have a place in the federal banking system if conducted in a safe and sound manner.”
(Translation: “Las actividades de activos digitales permitidas […] tienen un lugar en el sistema bancario federal si se realizan de manera segura y sólida.”)

Erebor aims to become a lender to the innovation economy, specifically targeting businesses in fields like cryptocurrency and artificial intelligence.

“We want to be a stable, low-risk, reliable bank doing normal banking things without messing everyone up with excessive risk,” a source close to the firm told the Financial Times.

Earlier reports indicated that Erebor aspires to be a vital source of funding for early-stage startups that have had trouble accessing traditional financing sources amid heightened regulatory scrutiny.

This atmosphere of caution stems from the turmoil of US regional banking in March 2023, which led to the failures or takeovers of multiple banks, including Silicon Valley Bank, Silvergate Bank, and others. Rising interest rates have further complicated financing for companies.

Regulatory Shifts Foster Crypto Firm Expansion

This approval follows a surge in regulatory actions in the US, including a new stablecoin bill signed into law by President Donald Trump. Additionally, Congress is evaluating further laws governing the structure of the crypto market.

Numerous crypto companies are seizing this moment to seek approvals for expanded operations. For example, Coinbase has applied for a national trust company charter with the OCC.

While Coinbase does not intend to operate as a bank, the charter would enable it to expand into payment and custody services.

Circle, the issuer of the USDC stablecoin, has also applied for a national trust bank license, while Ripple Labs is pursuing a similar license.

However, not everyone is in favor of these moves. Institutions representing banks and credit unions have called on the OCC to postpone granting bank charters to crypto firms, citing significant concerns. Caitlin Long, founder of Custodia Bank, has countered these objections, claiming that the debate is likely headed for litigation. (Translation: “la cuestión sobre si los permisos de fideicomiso pueden funcionar como permisos de banca de facto — permitiendo a las instituciones otorgar préstamos y obtener cuentas maestras de la Reserva Federal con solo una fracción del capital requerido de los bancos de servicio completo — es ‘muy probable que sea litigada.’”)