A new charter, not an old bank with a new brand
Erebor Bank, N.A. entered the banking system on February 6, 2026. The OCC’s public application record identifies that date as the charter’s effective date, and the FDIC records the same establishment and insurance date. The Columbus, Ohio institution holds certificate 59378 and national charter 25357. It was created as a new bank rather than obtaining its banking identity by buying an existing community bank. [1] [7]
The distinction is central to the story. A technology company can build software around another bank’s deposit accounts; Erebor instead sought responsibility for an insured bank’s own balance sheet. That puts lending, , capital and compliance obligations inside the institution whose name appears on the charter. The FDIC’s active record establishes the bank’s legal status; it does not certify every product claim or future business plan. [1]
The proposed customers and the people behind it
The June 2025 application targeted technology companies working in artificial intelligence, virtual currencies, defense and manufacturing, as well as payment businesses, investment funds and trading firms. It also described selected wealthy individuals connected to those sectors and some services for foreign banking organizations. The proposed Columbus headquarters and New York office were not intended as walk-in branches. Banking would be delivered remotely to customers across the country and, for certain services, internationally. These were the organizers’ stated plans, not a verified census of its eventual customers. [3]
The OCC’s October approval letter named Owen Rapaport as proposed chief executive and principal shareholder, Jacob Hirshman as proposed chief strategy officer and principal shareholder, and Palmer Luckey as a director and principal shareholder. It contemplated the organizing company merging into the bank during formation, leaving no bank holding company. That record explains the proposed ownership structure without providing an up-to-date ownership percentage for every investor. It should not be treated as a current private-company valuation or capitalization table. [5]
Approval came in stages
The OCC announced preliminary conditional approval on October 15, 2025. The word preliminary mattered: the bank still had to satisfy pre-opening requirements before it could operate. The agency described its decision as applying the standards used for charter applications and rejected the idea of a blanket barrier to digital-asset activity. That statement was about the regulatory approach, not a promise that a new bank’s business would succeed. [4]
The FDIC approved the deposit-insurance application on December 16. Conditions included maintaining at least a 12% tier 1 leverage ratio during the first three years, preparing records needed to process insured accounts in a failure, and drawing on a capital-call agreement if specified capital conditions were breached. In ordinary terms, the sponsors had to provide a substantial capital cushion and a mechanism to replenish it. Final opening followed in February, as separately recorded by the OCC. [6] [7]
Connecting bank money and blockchain payments
The application grouped planned products into credit, deposits, stablecoin-related services and supporting payment and treasury functions. It described international customers using dollar-based banking and year-round settlement, as well as controls for international and correspondent activity. That combination aims to connect conventional bank accounts with payment systems that do not stop at traditional banking hours. The application establishes intent; it does not show that every listed service was operating on launch day. [3]
A later, dated example is narrower and more concrete. On April 2, 2026, the Sui Foundation said Erebor customers could deposit and withdraw stablecoins using the Sui blockchain. The announcement also described a banking core built to support blockchain-enabled settlement. This is a statement by the network’s supporting organization about a specific integration, not independent evidence of transaction volume, customer satisfaction or profitability. It does not establish that Erebor itself issued a stablecoin. [8]
What the June regulatory balance sheet shows
At June 30, 2026, the bank reported $4.665 billion in assets and $4.057 billion in deposits. It held $4.171 billion in cash and balances due from depository institutions, approximately 89.4% of assets, alongside $376.1 million in securities. Net loans and leases were only $77.2 million. Equity was $597.4 million, and the year-to-date net loss through June was $16.3 million. These are bank financials, not a fundraising valuation. [2]
The cash-heavy balance sheet shows that gathering deposits had moved much faster than deploying money into loans. No nonaccrual loans were reported, but the institution had operated for less than five months and its loan book was still small. That short record cannot demonstrate how credit performance will behave through a full economic cycle. The loss is a year-to-date figure covering the bank’s operating period, not a second-quarter-only loss. [2]
New payment technology brings familiar obligations
The OCC’s approval also required advance notice and supervisory non-objection for significant changes to the business plan, including limits intended to preserve a highly liquid balance sheet. Its permission to hold limited crypto assets for transaction fees was tied to carrying out permissible banking activity. It was not an unrestricted authorization to speculate with depositors’ money. The bank’s operating model remains bounded by banking requirements even where the payment technology differs. [5]
FDIC insurance protects eligible deposits within applicable rules and limits when an insured bank fails. The agency expressly distinguishes those deposits from crypto assets, which it does not insure. A customer’s use of a stablecoin payment service therefore should not be read as government protection of the token itself, its market value or a separate platform. The legal form of the asset and where it is held remain consequential. [9]
An early chapter with limited public evidence
Erebor’s public website provides a bank identity and insurance notice, but little operating detail. This account relies on dated regulatory records and the specific product announcement rather than filling that gap with promotional growth claims. The next financial reports can clarify whether deposits remain, how the bank deploys and whether revenue begins to cover its operating costs. The opening established a regulated institution; a durable banking franchise will require a longer record. [10]
Sources
- FDIC active institution record, October 2, 2026 index; checked October 6, 2026Official sourceBack to text: ↑1↑2
- FDIC bank-level financials, June 30, 2026 and June 30, 2025; dollars in thousands, income year to dateOfficial sourceBack to text: ↑1↑2
- Erebor public charter application, submitted June 2025; proposed business modelOfficial source · PDFBack to text: ↑1↑2
- OCC preliminary conditional charter approval announcement, October 15, 2025Official releaseBack to text: ↑
- OCC conditional approval letter, October 15, 2025; organization, ownership and operating conditionsOfficial release · PDFBack to text: ↑1↑2
- FDIC deposit-insurance approval and conditions, December 16, 2025Official releaseBack to text: ↑
- OCC charter application 2025-Charter-342076: effective February 6, 2026Official sourceBack to text: ↑1↑2
- Sui Foundation announces Erebor stablecoin-network support, April 2, 2026SourceBack to text: ↑
- FDIC explanation of deposit-insurance limits for crypto assets, July 28, 2022Official sourceBack to text: ↑
- Erebor official website; checked October 6, 2026SourceBack to text: ↑