Erebor Bank Becomes First New Bank Greenlit by Trump 2.0

A hobbit-themed startup bank, Erebor, founded by Trump supporter Palmer Luckey, becomes the first new bank to receive a federal charter under the new administration.

Erebor Bank, a startup founded by Palmer Luckey the tech entrepreneur best known for creating Oculus and as an early, vocal supporter of Donald Trump has been granted a federal banking charter, becoming the first new bank to be greenlighted under the Trump 2.0 administration. The approval marks a significant political and financial milestone, signaling a new phase of fintech deregulation and a friendlier stance toward fintech experimentation.

The bank, whose name and branding are inspired by J.R.R. Tolkien’s fictional dwarf kingdom from The Hobbit, is positioning itself as a “bespoke financial fortress” for technology founders, venture capitalists, and clients aligned with its pro-innovation, pro-sovereignty ethos. Luckey, often seen in his signature Hawaiian shirts, has stated the bank’s goal is to “protect hard-earned treasure and fund ventures that build the future,” with a focus on defense tech, AI, and cryptocurrency custody Banking.

The charter approval by the Office of the Comptroller of the Currency (OCC) follows a streamlined review process championed by the current administration to encourage competition and reduce barriers to entry in the concentrated banking sector. Critics, however, have raised concerns about the potential for preferential treatment due to Luckey’s political connections and the bank’s narrow, niche focus which may pose concentration risks.

In a statement, Luckey said, “Erebor is built for builders. We’re tired of legacy banks that slow down innovation. This charter allows us to provide the financial tools and security that the next industrial revolution deserves.” The bank plans to offer high-net-worth personal and commercial banking, with an emphasis on asset protection, venture debt, and seamless integration with digital asset platforms.

The approval is seen as a test case for the administration’s broader financial policy, which emphasizes reducing regulatory burdens for startups aligned with its economic vision. Erebor Bank will begin onboarding its waitlisted clients immediately, with a full public launch scheduled for Q2 2026.