Billionaires Close to Donald Trump Secure US Approval for a New Bank

When the Office of the Comptroller of the Currency quietly granted conditional approval for a new national bank charter this week, it did more than tick a regulatory box. It handed a fast path to a financial venture built and bankrolled by some of Silicon Valley’s most outspoken figures; people who have not been shy about their political ties.

The bank, called Erebor, arrives with bright promises for crypto-friendly infrastructure, credit for AI and defence startups, and a pitch that it will be a safer, smarter successor to the institutions that failed tech clients in 2023. But the moment is also soaked in politics. For critics, the approval reads like a case study in how influence and money interact with a regulator that has signaled it is eager to welcome innovation.

Let’s break down with this blog what Erebor actually plans to do, who is behind it, and why the approval matters right now.

What is Erebor and Who Put Up the Money

Erebor is a digitally native bank that says it will serve companies and individuals tied to crypto, artificial intelligence, defense contractors, manufacturing, and the broader innovation economy.

It was founded this year by tech entrepreneurs and investors including Palmer Luckey and Joe Lonsdale, and it counts Peter Thiel and several venture funds among its backers. The organizers filed for a national charter in June and reported roughly a quarter of a billion dollars in committed capital during the application process.

Who Are These Founders and Backers

Palmer Luckey is best known as the founder of Oculus VR, which Facebook acquired in 2014. He later launched Anduril Industries, a defense technology firm focused on AI-powered security systems and autonomous drones, a company that has become a key Pentagon contractor.

Joe Lonsdale co-founded Palantir Technologies alongside Peter Thiel and later built 8VC, a venture capital firm investing in early-stage tech startups.

Peter Thiel, one of Silicon Valley’s most influential billionaires, was an early investor in Facebook and co-founder of PayPal and Palantir. Known for his conservative politics and past support for Donald Trump, Thiel remains one of the most prominent tech figures bridging finance, ideology, and innovation.

Why the Timing Set Off Alarms?

Regulators have been adjusting how they treat crypto and innovation-focused banks since the Silicon Valley Bank collapse in 2023. The current Comptroller has publicly said he wants a dynamic banking system and has been more willing to consider novel business models when safety and soundness are addressed.

That posture, combined with Erebor’s stated appetite for crypto custody and stablecoin-related services, has intensified scrutiny. Senator Elizabeth Warren and other Democrats immediately questioned whether close political ties to Donald Trump influenced the speed or outcome of the approval, warning that policies could risk favoring allies of the administration rather than ensuring broader financial stability.

What Erebor Promises to Do Differently?

Erebor’s public filings and proposals focus on what it calls a tightly governed approach to digital asset services.

The bank says it will build regulated infrastructure for stablecoins and custody with layers of compliance and operational safeguards and stresses that it is not aiming to be a speculative trading desk. The leadership team named in filings includes experienced bank operators and crypto compliance executives, while major outside investors have said they will not manage day-to-day operations.

Still, large shareholder stakes and visible political connections from some backers make the optics complicated.

Why Investors and Startups Might Care?

For startups that felt stranded after SVB’s collapse, a bank that understands venture capital, tokenized assets, and fast payroll needs is attractive.

Erebor pitches itself as a specialist lender and service provider for a niche that mainstream banks often avoid. If it pulls off its plan, it could restore confidence among founders and funds who want banking partners that can handle crypto treasuries, payroll in tokenized form, and cross-border payments without being blocked by regulatory caution.

The Risks and the Road Ahead

Conditional approval is not the finish line. Erebor must clear compliance checks, final operational reviews, and other conditions before deposits and lending can begin in earnest.

Regulators will be watching whether the bank can translate a promising charter into rigorous risk controls. Critics will keep pressing for transparency and whether political connections had any sway. The broader question for policymakers is how to accommodate innovation in finance without recreating fragile institutions.

Bottom Line

Erebor’s approval is a test case. It shows how capital, tech ambition, and politics now intersect in the U.S. banking landscape.

For some, the new bank is a welcome specialist partner that may fill a gap left by SVB. For others, it’s a cautionary moment about how influence can shape the contours of finance. Either way, this story will not end with a charter, the real story will unfold in the months ahead as Erebor moves from paper promises to operational reality, and as regulators decide how tightly they will hold the levers they just handed over.

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