US regulators have given the green signal to a new, tech and crypto-friendly bank to operate in the country.
Called Erebor Bank, the lender is backed by a group of high-profile tech billionaires with ties to the Donald Trump administration and received conditional approval from the Office of the Comptroller of the Currency to operate in the US.
The Columbus, Ohio-based firm was founded this year by a group that included Palmer Luckey, co-founder of military contractor Anduril Industries Inc. Joe Lonsdale, head of venture capital firm 8VC and a co-founder of data analytics firm Palantir Technologies Inc., is the co-founder of Erebor, according to a report by The Financial Times.
Luckey and Lonsdale were major contributors to Donald Trump’s most recent presidential campaign.
“Today’s decision is also proof that the OCC under my leadership does not impose blanket barriers to banks that want to engage in digital asset activities,” Comptroller of the Currency Jonathan Gould said in a statement Wednesday. “Permissible digital asset activities, like any other legally permissible banking activity, have a place in the federal banking system if conducted in a safe and sound manner.”
Peter Thiel’s venture firm Founders Fund and Haun Ventures are the other investors in the bank
What is Erebor Bank? Who is it for?
Erebor Bank will function as a bank whose primary focus will be tech companies focussed on cryptocurrencies.
According to its banking charter application quoted by FT, Erebor will target businesses that are part of the US “innovation economy” as its primary market. These include tech companies with a focus on cryptocurrencies, artificial intelligence, defence and manufacturing.
The bank will also cater to individuals who work with these industries.
Erebor is one of several firms involved with digital assets or payments that have sought a bank or trust license from federal and state regulators in the US recently. Others include Stripe Inc.’s stablecoin platform Bridge, crypto exchange Coinbase Global Inc. and UK-based payments processing firm Checkout.com.
US President Donald Trump’s family has been involved in various crypto ventures including a decentralized finance platform, World Liberty Financial Inc., and crypto-mining firm American Bitcoin.
Can Indians open accounts at Erebor?
Usually, Indians can open offshore bank accounts in accordance with the through the Liberalised Remittance Scheme (LRS) of the RBI, which permits a resident to remit up to $250,000 per financial year for various purposes like education, travel, and investment.
Many banks in the US, like the Bank of America, allow foreign citizens to open an account at their branches. Opening an account in these banks may require an in-person visit and two identification documents including your passport, among others.
Erebor has however not mentioned if Indians or other foreigners can open accounts with them.
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