FDIC Approves Thiel-Backed Bank for Deposit Insurance Coverage

The Federal Deposit Insurance Corp. gave the nod for Erebor Bank N.A. to receive deposit insurance coverage, a key step forward for the crypto-oriented lender as the Trump administration further embraces digital assets.

The FDIC found Erebor, backed by Palantir Technologies Inc. co-founder Peter Thiel and Anduril Industries Inc. co-founder Palmer Luckey, satisfied the statutory factors for approval, subject to certain conditions.

The Ohio-based lender will be required to comply with regulations for the processing of deposit accounts in the event of a bank failure and to maintain an appropriate tier 1 leverage ratio during its first three ...