Peter Thiel-backed crypto-friendly Erebor Bank eyes $8 billion valuation as deposits nearly quadruple: Bloomberg

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.