Erebor Bank is negotiating a new funding round that would value it at at least $8 billion, approximately double the $4.35 billion it reached last December after raising $350 million, according to Bloomberg. The bank, focused on cryptocurrencies and the defense sector, was founded by Palmer Luckey and is backed by Peter Thiel.
The institution’s deposits nearly quadrupled since March, rising from $1.1 billion to $4.05 billion, and the bank added around 400 new clients in the last three months. Luckey specified that none of the new clients came from his own companies, which shows there is independent organic growth. The bank projects it will reach profitability before the end of the year.
Erebor received preliminary approval from the Office of the Comptroller of the Currency in October 2025 and obtained its definitive national banking charter in February 2026, becoming the first new license of its kind granted under the Trump administration.
Among its plans is offering deposits and payments in dollar-denominated stablecoins, although demand for credit backed by crypto assets proved lower than expected. Senator Elizabeth Warren has already expressed “serious concerns” about the speed with which Erebor obtained its charter and questioned whether political ties to the government accelerated the process.
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