US regulators have granted preliminary, conditional approval for the launch of Erebor, a new bank founded by Palmer Luckey and Joe Lonsdale. Targeting the "innovation economy," Erebor will cater to companies and investors in sectors like crypto, AI, defense, and manufacturing. With $275 million in capital, the bank aims to fill the void left by the collapse of SVB, focusing on digital services and stablecoins. Erebor, headquartered in Columbus, Ohio, with an office in New York, is expected to open in the coming months. Co-CEOs Jacob Hirshman and Owen Rapaport will lead the bank, while Luckey and Lonsdale will not participate in daily operations. Despite previous political donations, the founders assert that no special approval was received for the bank's establishment.