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.
© 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.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
