The Office of the Comptroller of the Currency (OCC) has provided a provision bank charter to Erebor Bank, the first de novo national bank charter issued under the current administration.
Erebor Bank is a digital asset-friendly bank that has the support of some big names, including Peter Thiel, Joe Lonsdale, and Palmer Lucky. Diogo Mónica, founder of Anchorage Digital, is on its Board of Directors. Owen Rapaport is listed as the bank’s CEO.
Comptroller of the Currency Jonathan Gould said he is committed to a dynamic and diverse federal banking system, and the approval of Erebor is indicative of this commitment.
“…under my leadership does not impose blanket barriers to banks that want to engage in digital asset activities. Permissible digital asset activities, like any other legally permissible banking activity, have a place in the federal banking system if conducted in a safe and sound manner. The OCC will continue to provide a path for innovative approaches to financial services to ensure a strong, diverse financial system that remains relevant over time,” said Gould.
In a blog post, Todd Baker stated that Erebor is not like Varo Bank, a chartered digital bank, which he claims has “never made money.”
In the bank charter filing, Erebor explained it would initially offer the following bank services, once approved:
- Credit products;
- Deposit products;
- Stablecoin-related services;
- Other services, including data processing, treasury management, credit card issuance through bank-partnership arrangements, and payments services. The Bank will not provide any fiduciary custody activities, for which fiduciary powers are required under state or federal law.
Erebor will also hold crypto on its balance sheet to be used for services like stablecoins and to pay fees required in supported blockchains.
“The Bank’s goal is to be the most regulated entity conducting and facilitating stablecoin transactions and to bring this modern form of traditional financial intermediation fully within the regulatory perimeter.”