Erebor Bank's fundraising talks target an $8B valuation, nearly double its year-end figure, after deposits hit $4B and the OCC granted a national charter for crypto lending.
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Erebor Bank has entered fundraising talks that could value the lender at $8 billion or more. That would nearly double its $4.35 billion valuation from the end of last year, Bloomberg reported, citing people familiar with the discussions.
The proposed round comes as deposits have expanded rapidly just months after the bank launched. Founded by Oculus creator Palmer Luckey, Erebor focuses on defense technology, hard-tech, AI, and crypto firms. It offers blockchain-enabled payments and crypto-backed lending, steering clear of more speculative crypto services.
Deposits climbed to more than $4 billion from $1.1 billion at the end of March, and the startup added nearly 400 customers over the same period. Luckey told Bloomberg the deposit growth came from hundreds of new clients, not companies he controls, pushing back on suggestions that growth depended on affiliated businesses.
The fundraising follows regulatory progress. The Office of the Comptroller of the Currency granted Erebor preliminary conditional approval for a national bank charter, the first de novo bank to receive such authorization under Comptroller Jonathan V. Gould. Gould said the regulator would not place "blanket barriers" on banks engaging in digital asset activities as long as they operate in a "safe and sound manner."
Erebor also became the first new national bank chartered during President Donald Trump's second term, further strengthening its regulatory position. The bank has aimed to fill part of the gap left after the collapse of Silicon Valley Bank, offering banking products to sectors that often struggle to access traditional financial services.
The valuation jump reflects investor demand for banking tailored to crypto and hard-tech industries, several people familiar with the talks said. The fundraising discussions remain under discussion; no final terms have been announced.
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