Banking startup Erebor raises $350 million at over $4 billion valuation following FDIC approval: Axios
Erebor, a banking startup co-founded by Anduril CEO Palmer Luckey, has raised $350 million at a $4.35 billion valuation, Axios reported Monday.The news comes on the heels of last week's Federal Deposit Insurance Corporation (FDIC) approval of Erebor's deposit insurance application to establish it as a newly chartered national bank. Axios' report says Lux Capital led the round, citing anonymous sources. Erebor's existing backers include Peter Thiel's Founders Fund, 8VC and Haun Ventures.Erebor was founded in 2025 by Silicon Valley mainstays Luckey and Joe Lonsdale with backing from Thiel and Haun Ventures. Like other projects associated with Thiel, Erebor is named after a mountain in author J.R.R. Tolkien's book series "The Lord of the Rings."Axios also reported that Erebor will likely launch next year.In its banking application, Erebor said it would provide both traditional banking and crypto-related products and services. The Financial Times reported in October that Erebor's application did not receive "special treatment" from the Trump administration, despite Luckey, Lonsdale, and Thiel's longstanding ties to the president."The target market for the Bank comprises businesses that are part of the United States innovation economy, in particular technology companies focused on virtual currencies, artificial intelligence, defense, and manufacturing, as well as payment service providers, investment funds and trading firms," Erebor said in its application. Erebor co-founder Luckey, a former Facebook executive, also serves as CEO at Anduril, a U.S. defense contractor. Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.