Erebor Bank’s deposit insurance application has been approved by the Board of Directors of the Federal Deposit Insurance Corporation.
Erebor received approval for a bank charter in October, the first de novo national bank charter issued under the current administration.
Headquartered in Columbus, Ohio, the bank was founded by top VCs/entrepreneurs. This includes Peter Thiel, Joe Lonsdale, and Palmer Lucky. Diogo Mónica, founder of Anchorage Digital, is a member of its Board of Directors. Owen Rapaport is the bank’s CEO.
The FDIC notes that Erebor Bank’s proposed business model will focus on providing deposit and lending products to businesses and individuals in the technology, payment systems, investment, and defense industries, including virtual currency market participants.
FDIC also stated that its staff found that Erebor Bank satisfied the statutory factors for approval, subject to certain conditions.
Among other conditions, Erebor Bank will be required to implement protocols to comply with the FDIC’s regulations regarding processing of deposit accounts in the event of a bank failure, to maintain a minimum 12 percent tier 1 leverage ratio during its first three years of operation, and, in the event it ceases to be considered “well capitalized” or falls below the minimum capital levels required by its primary Federal regulator, to exercise its rights under its Capital Call Agreement to obtain at minimum the amount of capital necessary to be considered “well capitalized.”
Erebor Bank is expected to launch in late 2026 or early 2027. As a modern bank, it will not be encumbered by physical branches and will be digital only.
