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Crypto Bank Erebor Approved for Conditional Federal Bank Charter by OCC
Erebor Bank aims to serve tech firms and digital asset sectors, filling gaps left by 2023 lender collapses with a 12% minimum Tier 1 leverage ratio requirement, OCC said.
- The OCC on Wednesday granted a preliminary charter to Erebor Bank, giving the Columbus, Ohio-based digital-native bank conditional national status as it fills the 2023 tech lender gap.
- On June 11, Erebor filed its charter application roughly four months ago to serve technology companies using virtual currencies, artificial intelligence, defense and manufacturing firms plus payment service providers, investment funds and trading firms.
- The OCC noted a 120-day decision goal and a quicker pace under Gould, tying approval to ongoing requirements including a 12% Tier 1 Leverage ratio during Erebor's first three years.
- Sen. Elizabeth Warren, D-MA, criticized the approval for catering to Silicon Valley billionaires linked to President Donald Trump, while critics warned it risks taxpayer bailouts amid recent bank failures.
- This year, regulatory shifts have eased paths for crypto-related banks as regulators appointed by President Donald Trump reversed resistance and more digital-asset firms seek federal charters after Anchorage Digital's 2021 precedent.
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Peter Thiel, Palmer Luckey, And Joe Lonsdale Backed Crypto-Friendly Erebor Bank Gets Preliminary Nod From Regulator - Grayscale Bitcoin Mini Trust (BTC) Common units of fractional undivided beneficial interest (ARCA:BTC)
Erebor Bank, a new crypto-focused financial institution backed by prominent tech investors Peter Thiel, Palmer Luckey, and Joe Lonsdale, received preliminary conditional approval for a national bank charter on Wednesday.
·New York, United States
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Total News Sources18
Leaning Left0Leaning Right1Center4Last UpdatedBias Distribution80% Center
Bias Distribution
- 80% of the sources are Center
80% Center
C 80%
R 20%
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