Who is Palmer Luckey? Trending for launching a crypto-friendly bank approved by US regulators

Palmer Luckey, the 33-year-old tech entrepreneur best known for founding the defense company Anduril, has risen in prominence again as his latest venture, Erebor—a crypto-focused digital bank—received conditional approval from the US Office of the Comptroller of the Currency (OCC) to begin operations.

This regulatory milestone was announced on October 15, 2025, marking a significant step forward for the Columbus, Ohio-based startup poised to serve Silicon Valley tech firms and innovators with cryptocurrency-friendly banking services.

Erebor, named after the ‘Lonely Mountain’ from J.R.R. Tolkien’s ‘The Hobbit,’ aims to offer a secure financial alternative where tech companies can conduct and facilitate stablecoins transactions alongside traditional banking services.


The startup intends to cater primarily to technology businesses specializing in virtual currencies, AI, defense, and manufacturing, as well as payment service providers and trading firms. This focus addresses a market gap exposed by the collapse of Silicon Valley Bank in 2023, which had served many tech startups before a catastrophic bank run.

Alongside Luckey, other prominent investors include Joe Lonsdale, co-founder of the venture capital firm 8VC, and billionaire Peter Thiel of Founders Fund. Luckey acts as a principal shareholder and board member but is not involved in day-to-day operations.

The company’s co-CEOs are Owen Rapaport, who has a background in crypto compliance and monitoring and Jacob Hirshman.

Federal Comptroller Jonathan Gould emphasized that the OCC’s approval of Erebor aligns with the agency's commitment to a diverse federal banking system inclusive of digital asset activities, provided they are conducted securely and responsibly. Gould highlighted that the OCC under his leadership does not apply blanket restrictions on banks engaging in digital asset business models.

The startup’s conditional approval starts a regulatory process requiring further clearance, including approval by the Federal Deposit Insurance Corporation (FDIC). Erebor applied for FDIC approval in July, with standard processing times averaging approximately nine and a half months.

Erebor’s leadership anticipates full regulatory approval within six months, an estimate drawn from an internal fundraising memo that cites “Palmer’s political network” as a factor expected to accelerate the process. Regulators, however, have not confirmed any expedited timeline, and typical FDIC review periods can extend nine months or longer.

Who is Palmer Luckey?

Palmer Freeman Luckey gained early fame as the founder of Oculus VR, which was acquired by Facebook, propelling him into tech prominence. More recently, he co-founded Anduril Industries, a cutting-edge defense technology company specializing in AI and autonomous systems. Luckey has also been a substantial political donor, supporting conservative causes and figures including President Donald Trump.

His involvement with Erebor ties together his tech entrepreneurship, defense innovation, and political network into a venture aimed at modernizing banking infrastructure for crypto and AI-driven companies, reflecting his growing footprint in both technology and finance sectors.