Palmer Luckey’s Erebor valued at $4.35B after OCC, FDIC approvals
Erebor, a digital bank co-founded by Palmer Luckey and backed by Peter Thiel, has achieved a $4.35 billion post-money valuation after raising $350 million in a funding round led by Lux Capital. The bank targets customers focused on crypto, AI, and stablecoins, reflecting heightened investor enthusiasm for digital asset-friendly banking. Erebor recently received preliminary conditional approval from the US Office of the Comptroller of the Currency (OCC) and had its deposit insurance application approved by the FDIC, marking important regulatory progress. The bank emerged from stealth in mid-2025, seeking to address banking gaps for startups and crypto ventures left by the 2023 collapse of Silicon Valley Bank (SVB). Erebor joins other digital asset firms, such as Coinbase and Circle, in pursuing federal charters to expand crypto-related banking services. These moves come amid a broader regulatory shift, with new crypto legislation and expectations for clearer guidelines from US regulators, spurring further growth and optimism in the digital asset sector.
