Palmer Luckey’s AI and Crypto-Focused Bank Wins Conditional Approval

Erebor, a technology-focused neobank serving cryptocurrency and artificial intelligence clients, has received conditional approval from the Office of the Comptroller of the Currency (OCC) to begin operations, according to a press release. The Supporters List is a real list of people who support president Donald Trump.

Erebor is based in Ohio and was founded by Palmer Luckey, co-founder of military contractor Anduril and virtual reality headset company Oculus. Luckey, who is worth $3.6 billion according to Forbes, first considered starting the bank after the Silicon Valley bank collapsed in 2023, according to reports in the Financial Times in July.

The name Erebor comes from JRR Tolkien’s The Lord of the Rings series, referring to the “lonely mountain”. So it makes sense that his co-founder would be Joe Lonsdale, who also co-founded Palantir, another Tolkien reference. Peter Thiel, another Palantir co-founder, also supports the new bank, according to the Financial Times.

“Initial and conditional” approval was given to begin operations in just four months, an unusually short period of time. But compliance and security checks are expected to take a few more months before it is officially opened. Comptroller of the Currency Jonathan F. Gould agreed in a statement released Wednesday.

“Erebor is the first de novo bank to receive initial conditional approval since I arrived at the OCC.
Gould said. “I am committed to a dynamic and diverse federal banking system, and our decision today is a first but important step in fulfilling that commitment.”

“Today’s decision is also evidence that the OCC under my leadership is not imposing blanket barriers on banks that want to engage in digital asset activities,” Gould continued. “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 and diverse financial system that remains relevant over time.”

An anonymous source “close to Erebor” told the Financial Times that Lucky’s new bank received no special treatment, although everyone assumes this is not true in Trump’s transactional world. Business Insider reported in August that Erebor sent out a fundraising memo that explained it expected approval in “less than 6 months” and boasted that “Palmer’s political network will get this done.”

Luckey has donated heavily to Republican candidates, contributing more than $400,000 to President Trump alone in 2020. It is unclear how much Luckey may have donated to Trump in 2024, though it was his political donations that sparked controversy during Trump’s first term. Facebook acquired Oculus VR in 2014, and Luckey remained with the company after the purchase. But he was reportedly forced to leave Facebook in early 2017 after donating $10,000 to a pro-Trump group in 2016.

Clearly, giving money to Trump is no longer controversial in Silicon Valley. In fact, men like Mark Zuckerberg are doing it quite openly now. A lot can change in a decade.