The United States has approved a national bank, Erebor Bank, during President Donald Trump’s second term. The bank has about $635 million in capital and aims to serve startups, venture-backed companies, and high-net-worth clients. Backed by prominent tech investors, Erebor targets emerging industries like defense tech, robotics, and AI.

Erebor Bank plans to integrate blockchain-based payment rails for continuous settlement, a unique feature in the US banking system. The bank’s strategy includes extending credit backed by crypto holdings or private securities and financing purchases of high-performance AI chips. Erebor reached a $4 billion valuation after raising $350 million in a funding round led by Lux Capital.

The institution launches with about $635 million in capital and aims to serve startups, venture-backed companies and high-net-worth clients, a segment left underserved after the 2023 collapse of Silicon Valley Bank. Erebor is backed by a roster of prominent technology investors, including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC and Elad Gil. The project was founded by Oculus co-creator Palmer Luckey, who will sit on the board but not manage daily operations.

Read more at CoinTelegraph: Erebor Secures First New US Bank Charter of Trump’s Second Term