Erebor raises $350M at $4.35B as OCC, FDIC approvals advance
Erebor, a digital bank co-founded by tech entrepreneur Palmer Luckey and backed by Peter Thiel, has reached a $4.35 billion post-money valuation after raising $350 million in a round led by Lux Capital, according to Axios. The financing coincides with regulatory progress toward a national bank charter, including approvals from the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC).
Axios reported that the round included new investors alongside prior backers such as Founders Fund, Haun Ventures and 8VC. The valuation highlights investor interest in banking platforms designed for customers active in crypto, AI and stablecoin-related services.
Erebor recently received preliminary conditional approval from the OCC, a key step toward obtaining a full banking license. Last week, the FDIC approved the bank’s deposit insurance application, which is valid for 12 months and will lapse if the institution is not formally established or if the FDIC does not grant an extension.
Luckey is known for founding Oculus VR, later acquired by Facebook, and co-founding defense technology company Anduril Industries.
Erebor emerged from stealth in mid-2025, positioning itself to serve startups and digital asset firms following market disruptions that intensified after the 2023 collapse of Silicon Valley Bank (SVB). SVB, a key banking partner for venture-backed technology companies, failed in March 2023 after rapid interest rate increases reduced the value of its long-duration securities and triggered a depositor run, resulting in one of the largest U.S. bank failures since 2008.
Digital asset banking services expand alongside regulatory developments
Erebor is part of a broader group of digital asset-focused companies seeking entry into the banking sector. Firms including Coinbase, Circle and Ripple Labs have pursued national trust charters or similar approvals from the OCC to scale custody, settlement and related services, and in some cases to connect traditional financial infrastructure with on-chain activity under a federal framework.
These efforts come amid a renewed push for regulatory clarity in the United States following the election of President Donald Trump. Recent developments include the approval of key stablecoin legislation and the introduction of a crypto market structure bill that, despite delays, has increased industry expectations for clearer rules.
On Monday, David Sacks said the Securities and Exchange Commission and the Commodity Futures Trading Commission are expected to issue “clear regulatory guidelines for cryptocurrencies.”
His comments followed changes at the CFTC, including leadership moves involving Mike Selig, which have reinforced expectations for a more defined regulatory framework for digital assets.
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