Peter Thiel’s Erebor Bank Secures OCC Green Light as Washington Warms to Crypto Banking
Federal banking regulators just handed crypto its biggest institutional win yet—and Wall Street didn't see it coming.
The Regulatory Thaw
Washington's frosty stance on cryptocurrency banking is melting faster than Arctic permafrost. The Office of the Comptroller of Currency approved Peter Thiel's Erebor Bank for crypto-linked services, signaling the most significant regulatory pivot since the SEC started approving Bitcoin ETFs.
Silicon Valley Meets Wall Street
Thiel's bank becomes the first major financial institution to bridge the gap between traditional banking and digital assets under full federal supervision. The move creates a blueprint for other banks to follow—assuming they can navigate Washington's suddenly shifting regulatory landscape.
The New Banking Playbook
Erebor's approval demonstrates that crypto banking can coexist with federal oversight. The decision effectively creates a new category of financial institution—one that understands blockchain technology better than your average banker understands compound interest.
Traditional banks spent years building moats around their castles while crypto built teleporters. Now Washington's finally noticed which technology actually works.
After SVB’s Fall, Erebor Bank Steps In to Serve Tech and Crypto Businesses
In the wake of Silicon Valley Bank’s dramatic collapse in 2023, which sent shockwaves through the startup and venture capital ecosystem, Erebor Bank is emerging as a deliberate attempt to fill the vacuum left in the financing of America’s economy.
Erebor seeks to serve clients in high-growth, high-tech sectors, including artificial intelligence, defense, manufacturing, and digital assets, as well as payment processors, venture funds, and trading firms.
The bank’s charter aims to operate as a full-service national bank, offering both traditional deposit and lending services, while integrating digital asset operations under a tightly regulated framework.
Peter Thiel @peterthiel joins tech billionaires in backing Erebor, a new US bank set to fill the funding gap left by Silicon Valley Bank’s 2023 collapse.#Erebor #PeterThiel https://t.co/x4NarhsPGz
According to its filings, Erebor expects to hold approximately $1 million in cryptocurrency for transactional purposes, indicating limited but deliberate exposure to digital assets.
Unlike the risk-heavy approach that defined some of its predecessors, Erebor’s model aims for conservatism and compliance.
A source close to the company told the Financial Times that Erebor aims to be “a stable, low-risk, reliable bank doing normal banking things without screwing everyone over with undue risk.”
The fall of SVB, along with Silvergate, Signature Bank, and First Republic, had left tech startups and crypto firms struggling to find stable banking partners. This disruption forced many to seek offshore or non-traditional solutions, a gap Erebor now seeks to fill with institutional discipline and Silicon Valley know-how.
Still, Erebor is not fully operational yet. The OCC’s conditional approval means the institution must complete a series of compliance, cybersecurity, and capital adequacy reviews, a process that could take several months, before receiving a final charter.
How Erebor’s Approval Reflects Washington’s Crypto Policy Pivot
Erebor’s approval comes amid broader regulatory momentum in Washington.
President Donald Trump recently signed the GENIUS Act, a landmark bill establishing oversight rules for stablecoin issuers, while Congress continues to debate broader crypto market structure legislation and limits on a central bank digital currency (CBDC).
@SECGov Chair Paul Atkins has reaffirmed support for a crypto market structure bill as the WHITE House expects the bill to pass by year-end 2025. #Bitcoin #Marketstructure #SEC https://t.co/cBbLNtKeS9
The new policy climate has encouraged several crypto-linked firms, including Coinbase, Circle, and Ripple, to pursue national trust or banking charters with the OCC.
In May, the OCC issued updated guidance confirming that banks may buy and sell cryptocurrencies held in custody at the direction of customers, an important reversal of prior restrictions.
@Coinbase has filed an application with the US Office of the Comptroller of the Currency (OCC) for a National Trust Company Charter.#Coinbase #Cryptohttps://t.co/WruBToItQd
The policy also allows institutions to outsource crypto custody and execution to third parties, provided they meet strict safety and soundness standards.
The clarification marked a clear shift toward integrating crypto activities within federally regulated banks.
Gould’s appointment in June reinforced that direction. The former Bitfury executive and OCC veteran was confirmed by the Senate in a narrow 50–45 vote, becoming the agency’s first permanent chief since 2020.
The US Senate has confirmed former crypto exec Jonathan Gould as OCC chief in a 50–45 vote, naming him the first permanent head since 2020.#OCC #JonathanGould https://t.co/ipM7YhaG8B
His background in blockchain and digital assets has shaped a more open stance toward innovation in banking.
Under his leadership, the OCC has already removed references to “reputation risk” in its internal guidance, a change viewed as reducing barriers for banks engaging in crypto-related services.
Despite the shift, some lawmakers have voiced concerns about the growing ties between politics and cryptocurrency.
In August, Senators Elizabeth Warren, Chris Van Hollen, and RON Wyden urged Gould to investigate potential conflicts of interest related to President Trump’s personal involvement in crypto ventures, particularly a stablecoin called USD1 issued by World Liberty Financial.
The senators questioned whether the OCC could maintain impartial oversight as it becomes the primary regulator for stablecoins under the GENIUS Act.
