Peter Thiel-backed crypto-friendly Erebor Bank eyes $8 billion valuation as deposits nearly quadruple: Bloomberg
02 Jul 2026 13:21 UTC
Erebor Bank, backed by Palmer Luckey and Peter Thiel, is in talks to raise funding at a valuation of at least $8 billion, per Bloomberg.
➤ Erebor Bank, backed by Peter Thiel and founded by Palmer Luckey, is seeking funding at an $8 billion valuation, nearly double its previous round.
➤ The bank has seen significant deposit growth, quadrupling since March to $4.05 billion, and plans to offer U.S. dollar stablecoin services.
➤ Despite rapid growth and regulatory approval, Erebor Bank faces scrutiny from Senator Elizabeth Warren regarding its charter process and potential political influence.
Quick Take
• Erebor Bank, a crypto- and defense-focused startup founded by Palmer Luckey and backed by Peter Thiel, is in talks to raise funding at a valuation of at least $8 billion, roughly double its $4.35 billion valuation from December, according to Bloomberg.
• The bank’s deposits have nearly quadrupled since March to $4.05 billion, and it expects to be profitable by the end of the year.
• Erebor Bank, founded by Palmer Luckey and backed by Peter Thiel, is discussing new funding at an $8 billion valuation, roughly double its December $4.35 billion round.
• The bank’s deposits have nearly quadrupled since March to $4.05 billion, and it has added nearly 400 customers in three months while aiming to be profitable by year-end.
• Erebor plans U.S. dollar stablecoin deposits and payments, though crypto-backed lending demand is lower than expected.
• It won preliminary OCC approval in October 2025, secured final national bank approval in February, and faces scrutiny from Sen. Elizabeth Warren over its rapid charter process.
Erebor Bank, the crypto- and defense-focused startup founded by Palmer Luckey and backed by Peter Thiel, is in talks to raise funding at a valuation of at least $8 billion.
The potential valuation would roughly double the $4.35 billion level Erebor secured in a $350 million funding round in December, Bloomberg reported, citing people familiar with the matter. The talks are preliminary, and the valuation is still under discussion, the people said.
The bank's deposit base has nearly quadrupled since March, reaching $4.05 billion from the $1.1 billion it disclosed to regulators at the end of that month, per the report. Erebor also added nearly 400 customers over the past three months and expects to be profitable by year-end.
Luckey said none of the bank's deposit growth this quarter came from his own companies, adding that hundreds of new customers had chosen Erebor independently.
Crypto plans
Erebor plans to offer U.S. dollar stablecoin deposits and payments, though demand for crypto-backed lending has been lower than the bank initially expected, one of the sources said.
Erebor received preliminary approval from the Office of the Comptroller of the Currency (OCC) in October 2025, before securing final approval to operate as a national bank in February, the first new national charter granted under the Trump administration.
The bank has also signed a non-binding letter of intent with Banco de Venezuela to provide correspondent banking services. Bloomberg said such a deal would ease foreign exchange flows into the sanctioned country and open a channel for transactions with the U.S.
Erebor’s fast rise has drawn scrutiny from Sen. Elizabeth Warren, who reportedly said she has "serious concerns" about how quickly Erebor secured its charter and questioned whether political connections in the Trump administration helped speed the process.
Categories rationale: The article focuses on a bank aiming to offer stablecoin services, fitting 'asset-types' -> 'stablecoins-digital-cash'. Its rapid charter process and regulatory interactions place it under 'jurisdictions' -> 'regulatory-sandboxes-pilots'. The involvement of prominent figures and its banking operations align with 'institutional-adoption' -> 'banking-depository-pilots'.Characteristics justification: The article discusses significant growth in deposits and a high valuation, indicating positive momentum ('sentiment': 0.4). However, the scrutiny from Senator Warren and the mention of potential political connections introduce an element of uncertainty ('uncertainty': 0.6). The rapid charter process and the bank's focus on crypto-related services, while not entirely novel, represent a significant development in the traditional banking sector ('entropy': 0.75). The news is relatively recent, but the underlying themes of bank chartering and stablecoin services have been discussed before ('staleness': 0.3). The specific details about Erebor Bank's funding and regulatory status make it highly relevant ('relevance': 0.8).Tag relevance: The tags 'erebor bank', 'peter thiel', 'palmer luckey', and 'valuation' are central to the article's main subject. 'Deposits' and 'stablecoin' highlight the bank's core business and offerings. 'Occ approval' and 'elizabeth warren' point to the key regulatory and political aspects discussed. 'Crypto-friendly' summarizes the bank's niche.Characteristics
uncertainty: 0.6
staleness: 0.3
relevance: 0.8
sentiment: 0.4
rwa: true
entropy: 0.75
asset-types: stable_coin
RWATimes slug: theblock-peter-thiel-backed-crypto-friendly-erebor-bank-eyes-8-billion-valuation-as-deposits-nearly-quadruple-bloomberg-1246953128