Federal regulators have granted preliminary approval to Erebor Bank, a crypto- and tech-focused financial institution co-founded by Palmer Luckey, which aims to secure final approval from the Federal Deposit Insurance Corporation. With backing from notable investors like Peter Thiel and Joe Lonsdale, Erebor plans to generate revenue by lending against crypto and valuable tech assets.

Palmer Luckey, co-founder of Anduril, is launching a new crypto-focused bank to fill the gap left by the collapse of Silicon Valley Bank. Backed by tech billionaire Joe Lonsdale and Peter Thiel's Founders Fund, the bank aims to be a heavily regulated entity facilitating stablecoin transactions.