Erebor Bank receives preliminary conditional approval in the US to operate a crypto-friendly bank

Foresight News reported, citing the Financial Times, that U.S. regulators have given preliminary and conditional approval to the establishment application of Erebor, a new bank founded by Palmer Luckey and Joe Lonsdale. The bank targets "innovation economy" companies and investors involved in crypto, AI, defense, and manufacturing. Erebor has secured $275 million in capital support and plans to focus on digital services, aiming to fill the market gap left by the collapse of SVB, with stablecoins set to be one of its business priorities. The co-founders previously donated to Trump's 2024 re-election campaign but stated that the approval did not receive any special treatment. Erebor is headquartered in Columbus with an additional office in New York and is expected to officially open in a few months; stablecoin business will be a significant part. The co-CEOs are Jacob Hirshman and Owen Rapaport. Luckey and Lonsdale are not involved in daily operations.