Erebor Bank, the crypto- and defense-focused startup founded by Palmer Luckey and backed by Peter Thiel, is in talks to raise funding at a valuation of at least $8 billion, Bloomberg reported on July 2, citing people familiar with the matter. The potential valuation would roughly double the $4.35 billion level Erebor secured in a $350 million funding round in December. The bank's deposit base has nearly quadrupled since March, reaching $4.05 billion from the $1.1 billion disclosed to regulators at the end of that month, driven by the addition of nearly 400 customers over the past three months. Luckey stated that none of the deposit growth this quarter came from his own companies, with hundreds of new customers choosing Erebor independently. Erebor received preliminary approval from the Office of the Comptroller of the Currency in October 2025 and final approval to operate as a national bank in February 2026, marking the first new national charter granted under the Trump administration.
Erebor Bank Deposit Base Reaches $4.05 Billion with 400 New Customers
Erebor Bank's deposit base grew from $1.1 billion at the end of March to $4.05 billion, according to Bloomberg's report. The bank added nearly 400 customers over the past three months. Palmer Luckey confirmed that none of the deposit growth this quarter originated from his own companies, emphasizing that hundreds of new customers selected Erebor independently. The bank expects to be profitable by year-end.
Erebor Bank Plans USD Stablecoin Deposits and Payments
Erebor Bank plans to offer U.S. dollar stablecoin deposits and payments, one of the sources told Bloomberg. Demand for crypto-backed lending has been lower than the bank initially expected, the source added. The bank's crypto services remain under development as part of its broader banking offerings.
Erebor Bank Receives OCC Approval and Signs Venezuela Banking Letter
Erebor Bank received preliminary approval from the Office of the Comptroller of the Currency in October 2025. The bank secured final approval to operate as a national bank in February 2026, becoming the first new national charter granted under the Trump administration. Erebor has signed a non-binding letter of intent with Banco de Venezuela to provide correspondent banking services. Bloomberg reported that such a deal would ease foreign exchange flows into the sanctioned country and open a channel for transactions with the U.S.
Sen. Elizabeth Warren Raises Concerns Over Erebor Bank Charter Process
Erebor Bank's rapid rise has drawn scrutiny from Sen. Elizabeth Warren, who reportedly stated she has "serious concerns" about how quickly Erebor secured its charter. Warren questioned whether political connections in the Trump administration helped speed the approval process. The senator's concerns focus on the timeline between preliminary and final OCC approvals.
FAQ
What valuation is Erebor Bank targeting in its funding talks?
Erebor Bank is in talks to raise funding at a valuation of at least $8 billion, according to Bloomberg's report citing people familiar with the matter. This valuation would roughly double the $4.35 billion level the bank achieved in a $350 million funding round in December.
How much did Erebor Bank's deposits grow since March?
Erebor Bank's deposit base grew from $1.1 billion at the end of March to $4.05 billion, nearly quadrupling over the period. The bank added nearly 400 customers over the past three months, with Palmer Luckey confirming that none of the deposit growth this quarter came from his own companies.
When did Erebor Bank receive regulatory approval to operate?
Erebor Bank received preliminary approval from the Office of the Comptroller of the Currency in October 2025 and secured final approval to operate as a national bank in February 2026. This marked the first new national charter granted under the Trump administration.
