Erebor, a new digital bank co-founded by Palmer Luckey, has recently achieved significant milestones in its path to launch. The company has secured conditional approval from US banking regulators and also received FDIC approval last week, which is a crucial prerequisite for accepting deposits. These approvals came swiftly, just four months after the submission of its application.
The bank aims to cater to technology businesses in areas such as artificial intelligence, crypto, defense, and manufacturing, as well as individuals involved with these sectors. It plans to operate under a digital-only model, headquartered in Columbus, Ohio, with a secondary office in New York. Erebor intends to be a highly regulated entity, specifically focusing on facilitating stablecoin transactions and offering services like crypto-collateralized lending.
Investor excitement for Erebor is notable, with the company raising $350 million at a $4.35 billion post-money valuation. This round was led by Lux Capital and included existing backers such as Founders Fund (Peter Thiel's venture firm), 8VC (Joe Lonsdale's firm), and Haun Ventures. Initially, Erebor was raising at least $225 million at a $2 billion valuation, indicating a rapid increase in its perceived value. Palmer Luckey, founder of Anduril, established Erebor, and the bank will be led by Owen Rapaport and Jacob Hirshman, a former adviser to stablecoin company Circle.
