Core Insights - Erebor Bank, a new crypto-focused financial institution, has received preliminary conditional approval for a national bank charter from the OCC, marking a significant development for the banking and crypto sectors [1][2]. Group 1: Approval Details - The OCC's approval establishes a potential path for federally regulated banks to engage with digital assets, emphasizing that the approval does not impose a blanket barrier for innovative financial services [2][3]. - Erebor Bank is the first de novo bank to receive preliminary approval under Comptroller Jonathan V. Gould's tenure, indicating a shift towards accommodating digital asset activities within the federal banking system [3]. Group 2: Bank Operations and Target Market - Erebor Bank aims to be a full-service institution targeting technology companies and ultra-high-net-worth individuals utilizing virtual currencies, and it has received approval to hold limited amounts of non-asset-backed virtual currencies for transaction fees [4]. - The bank was conceived to fill a market void for tech and crypto startups following the collapse of Silicon Valley Bank in 2023, and it will operate without a holding company after merging with its organizing entity, Erebor Group, Inc. [6]. Group 3: Conditions for Final Approval - The OCC's approval is preliminary and conditional, requiring Erebor to meet strict pre-opening requirements, including maintaining a minimum 12% Tier 1 Leverage ratio for its first three years of operation [5].

This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. The Office of the Comptroller of the Currency said Wednesday it has conditionally approved a de novo bank charter application for Erebor Bank, founded by tech billionaires Palmer Luckey and Joe Lonsdale. The Columbus, Ohio-based digital-native bank applied for a charter roughly four months ago, on June 11, indicating an intention to serve tech companies focused on vi ...