First De Novo Bank Approved Under Trump Opens With Focus on AI and Crypto Clients
Erebor, a newly chartered bank targeting high-net-worth individuals and companies in artificial intelligence, defense, and cryptocurrency, officially opened for business on February 8th, marking the first de novo bank approval during President Trump's second term.
The bank, whose name references J.R.R. Tolkien's fictional mountain fortress in "The Lord of the Rings," submitted its charter application to the Office of the Comptroller of the Currency in June 2025. Its launch comes nearly three years after the collapse of Silicon Valley Bank in March 2023, a gap that Erebor explicitly aims to address for technology-focused clients.
Erebor's business model centers on serving startups and established companies in AI, manufacturing, defense, and crypto sectors, alongside payment service providers, investment funds, and trading firms. The bank has attracted backing from prominent figures in the current administration's orbit, including Palmer Luckey, founder of defense contractor Anduril Industries.
The opening arrives as traditional banks continue to exercise caution around cryptocurrency-related clients, creating opportunities for specialized institutions willing to navigate the regulatory complexity. For CFOs at tech companies and investment funds, Erebor represents a potential banking alternative designed specifically for their operational needs, though the bank's long-term stability remains untested.
The same week saw turbulence elsewhere in fintech banking. UnCash, a so-called "no KYC" crypto card service, abruptly shut down on February 14th, just one day after being featured in a compliance analysis by Fintech Business Weekly. The company blamed Mastercard for what it described as a "clean, corporate guillotine," noting that 90% of its cards operated on Mastercard's network.
"This isn't a minor inconvenience — it's a death sentence," UnCash stated. "And frankly, we're done pretending we can fight Goliath with a slingshot made of good intentions." The company said it would refund users, who can withdraw funds to external crypto wallets.
The contrasting fates of UnCash and Erebor illustrate the diverging paths available to financial services targeting crypto clients. While UnCash operated in regulatory gray areas that ultimately proved unsustainable, Erebor pursued full federal banking authorization—a lengthier, more expensive process that provides clearer legal standing.
For finance leaders evaluating banking relationships, Erebor's approval signals potential regulatory openness to crypto-friendly institutions under the current administration, provided they pursue proper licensing. The bank's focus on payment service providers and trading firms suggests it may offer treasury management capabilities that traditional banks have been reluctant to extend to crypto-adjacent businesses.
The question facing CFOs is whether Erebor's specialized focus and political connections translate into operational reliability and competitive pricing, or whether the bank's narrow client base creates concentration risks that could echo Silicon Valley Bank's vulnerabilities.
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