Erebor Bank targets $8B valuation as deposits surge

Erebor Bank seeks to raise funds at an $8B valuation after deposits quadrupled to $4B and nearly 400 new customers joined in three months.

Erebor Bank, a federally chartered digital bank founded by Palmer Luckey and backed by Peter Thiel and other prominent investors, is in talks to raise funds at a valuation of at least $8 billion. This would nearly double its previous $4.35 billion valuation from late 2025. The bank, which serves crypto, defense, and AI clients, has experienced rapid growth. Deposits surged from $1.1 billion at the end of March to over $4 billion, with nearly 400 new customers added in just three months. Erebor received its national banking charter in February 2026, becoming the first new national bank chartered under the Trump administration. Erebor plans to offer stablecoin deposits and payments, although demand for crypto-backed lending has been lower than expected. The bank anticipates reaching profitability before year-end. Fundraising discussions are ongoing, and the swift approval of Erebor’s charter has attracted scrutiny from some lawmakers.