Proposed Erebor Bank secures conditional OCC approval

The Office of the Comptroller of the Currency has issued conditional approval for Erebor Bank, a proposed de novo backed by Peter Thiel and Palmer Luckey that would incorporate stablecoin into its business plan.

The OCC’s decision authorizes the organizers of the planned Columbus, Ohio, de novo to advance toward a pre-opening examination. Erebor, which still needs approval from the Federal Deposit Insurance Corp., aims to serve  technology companies involved with virtual currencies, AI, defense, and manufacturing, along with payment service providers, investment funds, and trading firms.

The bank must maintain a Tier 1 leverage ratio of 12% during its first three years. Organizers must receive an agency letter of non-objection before filling posts such as Bank Secrecy Act officer and the chief information security officer, or adding new directors.

Organizers plan to raise about $225 million in initial capital.  Owen Rapaport would serve as CEO, while Michael Hagedorn would be president. Jacob Hirshman is listed as the chief strategy officer, Richard Grant would serve as chief financial officer, and Aaron Pelz would be the chief technology officer. Luckey would join the board.