FDIC Approves Deposit Insurance for Erebor Bank Founded by Palmer Luckey

The Federal Deposit Insurance Corporation (FDIC) approved a deposit insurance application for Erebor Bank, a new national bank founded by Palmer Luckey. The bank, backed by Peter Thiel's Founders Fund and Joe Lonsdale's 8VC, received conditional approval for a national bank charter from the Office of the Comptroller of the Currency (OCC) in October and expects to obtain its full charter in 2026.

Headquartered in Columbus, Ohio, Erebor Bank plans to offer deposit and lending products targeting technology, payment systems, investment, and defense sectors, including virtual currency participants. It will mint and burn stablecoins and lend against virtual currencies, operating 24/7 without physical branches. The bank will start with $276 million in capital and maintain a capital leverage ratio of at least 12% for its first three years.