Erebor, a financial services company backed by billionaire Peter Thiel, has received regulatory approval to launch in the United States — a move that could help fill the gap left by the collapse of Silicon Valley Bank in 2023.

According to a report by the Financial Times on Wednesday, Erebor has secured a preliminary banking charter but must still clear several compliance and security hurdles before it can begin operations — a process that could take several months.

The approval was confirmed by the Office of the Comptroller of the Currency (OCC), with Comptroller Jonathan V. Gould saying that “permissible digital asset activities […] have a place in the federal banking system if conducted in a safe and sound manner.”

Erebor is positioning itself as a lender to the so-called innovation economy, focusing on businesses in sectors such as cryptocurrency, artificial intelligence and advanced technology.

“We want to be a stable, low-risk, reliable bank doing normal banking things without screwing everyone over with undue risk,” a person close to the company told the Financial Times.

Earlier reports indicated that Erebor aims to become a key source of funding for early-stage startups that have struggled to access traditional capital markets amid tighter regulatory scrutiny. 

Much of that caution followed the US regional banking turmoil of March 2023, when Silicon Valley Bank, Silvergate Bank, Signature Bank and First Republic Bank all collapsed or were taken over. Rising interest rates also made it harder for companies to secure financing.

Related: Peter Thiel vs. Michael Saylor: Crypto treasury bet or bubble?

Regulatory shifts spur crypto firms to expand

The approval comes amid a wave of regulatory momentum in the United States, as President Donald Trump has signed a major stablecoin bill into law and Congress weighs additional legislation on crypto market structure and restrictions on a central bank digital currency (CBDC).

Several crypto companies are seizing the moment to seek regulatory approval for expanded operations.

Crypto exchange Coinbase has applied for a national trust company charter with the OCC, joining several other digital asset firms seeking similar licenses. Although Coinbase has said it does not intend to become a bank, the charter would allow it to expand into areas such as payments and custody services.

Circle, the issuer of the USDC stablecoin, has also applied to establish a national trust bank, while Ripple Labs has filed for a similar license.

Nevertheless, the move hasn’t been welcomed by everyone. US banking and credit union trade groups have urged the OCC to delay granting bank charters to crypto companies, citing “significant policy and process concerns.”

Custodia Bank founder Caitlin Long pushed back against those objections, pointing out that the issue is likely to end up in court. 

Long argued that the question of whether trust charters can function as de facto bank charters — allowing institutions to make loans and obtain Federal Reserve master accounts with only a fraction of the capital required of full-service banks — is “very likely to be litigated.”

Related: Bank lobby is ‘panicking’ about yield-bearing stablecoins — NYU professor