Palmer Luckey and Peter Thiel's Erebor Bank: 'The SVB for AI, Crypto, and Defense'
Erebor Bank, founded by Palmer Luckey and Peter Thiel, secured its federal charter in just 8 months—the first under Trump's second term. The bank fills the post-SVB void for tech startups by accepting GPU clusters, crypto assets, and defense contracts as collateral. Senator Warren is investigating potential political favoritism.
- Erebor Bank, founded by Palmer Luckey and Peter Thiel, obtained its federal charter in 8 months by accepting GPU clusters and crypto as collateral
- Senator Warren is investigating whether political connections expedited regulatory approval
First federal bank charter under Trump 2.0 completed in 8 months… Senator Warren launches investigation into 'political favoritism'
Two of Silicon Valley's most controversial figures have founded a bank.
Palmer Luckey (Anduril founder), Peter Thiel (Palantir founder and Founders Fund), and Joe Lonsdale (Palantir co-founder and 8VC) established Erebor Bank in 2025, which obtained its federal national bank charter from the Office of the Comptroller of the Currency (OCC) in February 2026. It is the first new national bank since Trump's second administration took office and the first de novo bank charter approval in four years.
The bank takes its name from Erebor, the gold-laden mountain in J.R.R. Tolkien's The Hobbit—a symbolic message of intent to fund AI, crypto, and defense sectors.
8-Month Approval: Historically Unprecedented
Erebor received its final charter in less than four months after conditional OCC approval. Here's the full timeline:
- June 11, 2025: Federal national bank charter application submitted to OCC
- October 15, 2025: OCC conditional preliminary approval (4 months later)
- December 2025: FDIC deposit insurance conditional approval
- February 2026: Final federal national bank charter granted
Erebor commenced operations with $635 million in capital. The 8-month completion is unprecedented given that new bank formations typically require 12–18 months. This starkly contrasts with the Biden administration, which approved zero fintech bank charters during its four-year term.
'The Farmer's Bank for AI and Defense Firms'
Think of us as the farmer's bank for the tech sector. I won't claim to be the world's best bankers, but we understand our customers.
Erebor's core differentiator is technical underwriting—accepting collateral that traditional banks reject. NVIDIA GPU clusters, cryptocurrency assets, Department of Defense supply contracts, and private equity stakes in unlisted tech firms all qualify. AI startups can now rapidly secure liquidity by pledging GPU infrastructure.
Early customers include firms building AI-powered manufacturing facilities, robotics startups, and space companies producing pharmaceuticals in microgravity environments.
The technology infrastructure is equally distinctive. Instead of 1970s-era settlement networks like SWIFT and ACH, the bank offers blockchain-based 24/7 payments. The OCC approved Erebor to hold native crypto assets and manage blockchain gas fees directly. As of April 2026, the bank has integrated the Sui network to support stablecoin deposits and withdrawals.
The Void Left by SVB's Collapse
Erebor's founding is directly rooted in Silicon Valley Bank's March 2023 failure. The bank aims to fill the gap created by SVB's demise. SVB functioned as the go-to bank for early-stage tech companies and venture capitalists that traditional banks deemed too risky.
Post-SVB, tech startups turned to expensive private debt. Erebor positions itself to address this gap as a rapid liquidity provider specialized in AI, defense, and crypto sectors.
Valuation Doubled in 6 Months; $600M Raised
Erebor has raised approximately $600 million across two funding rounds.
- Series A (Founders Fund led): $225–250 million at $2B valuation
- Series B (Lux Capital led): $350 million at $4.35B valuation
The valuation surge reflects investor confidence in regulatory milestones achieved and expectations around crypto-friendly policy.
Senator Warren Launches 'Political Favoritism' Probe
However, the launch has not been without friction. On April 23, 2026, Senator Elizabeth Warren raised serious concerns about Erebor's expedited regulatory approval process and whether political connections accelerated the timeline, initiating a formal investigation.
In investor documents obtained by Warren's office, Erebor explicitly cited 'unique connectivity to banking regulators' as a competitive advantage—a claim that could fuel allegations of political favoritism.
OCC Comptroller Jonathan Gould publicly posted congratulations to Erebor on his X account following the conditional approval announcement. Luckey sits on Erebor's board but does not hold an operational role.
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