Erebor, a digital banking entity co-founded by tech innovator Palmer Luckey, along with support from billionaire Peter Thiel, has achieved a post-money valuation of $4.35 billion following a funding boost of $350 million led by Lux Capital. Reports suggest that this significant valuation reflects a mounting institutional interest in banking solutions focused on cryptocurrency, artificial intelligence, and customers interested in stablecoins. As regulatory bodies begin to fast-track the approval process for chartering the bank, recent news indicates that Erebor received preliminary conditional approval from the U.S. Office of the Comptroller of the Currency (OCC), marking a crucial regulatory milestone.
In the last week, Erebor’s application for deposit insurance was approved by the Federal Deposit Insurance Corporation (FDIC), which is effective for 12 months, contingent on the formal establishment of the bank.
Investors joining this funding round include newcomers but also previous supporters like Founders Fund, Haun Ventures, and 8VC, demonstrating a strengthened enthusiasm for financial establishments that merge conventional banking services with digital asset capabilities.
Luckey gained recognition as the original creator of Oculus VR, the virtual reality headset firm acquired by Facebook, and later as co-founder of Anduril Industries, a defense firm. Erebor surfaced in 2025 in response to gaps in the banking sector, particularly for startups and crypto-focused companies, exacerbated by the March 2023 failure of Silicon Valley Bank (SVB).
Erebor is now among several digital asset-oriented businesses venturing into the banking sector, alongside notable companies such as Coinbase, Circle, and Ripple Labs, all pursuing national trust charters from the OCC. This interest comes amid renewed efforts for regulatory clarity in the U.S. following significant political shifts. David Sacks, serving as a man dedicated to crypto and AI initiatives under the Trump administration, conveyed expectations for the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to establish clear guidelines for cryptocurrencies.
