Erebor Bank in talks at $8B valuation as deposits hit $4.05B

Erebor Bank is in early-stage discussions to raise capital at a valuation of at least $8 billion. That potential valuation would be roughly double the roughly $4.35 billion level set when the company raised $350 million in December. Company contacts cautioned the talks are preliminary and that valuation terms remain under discussion.

The bank disclosed that its deposit base grew to $4.05 billion from $1.1 billion at the end of March and that it added nearly 400 customers over the past three months. Erebor expects to reach profitability by the end of the year.

Founder Palmer Luckey noted that none of the recent deposit growth came from his own companies and that hundreds of customers had chosen the bank independently.

Erebor plans to expand services tied to digital assets, including U.S. dollar stablecoin deposits and payment capabilities. Demand for crypto-backed lending has been weaker than the bank originally anticipated, prompting a greater emphasis on payments and custody offerings.

The firm received preliminary approval from the Office of the Comptroller of the Currency in October 2025 and secured final approval to operate as a national bank in February 2026. That charter is the first new national bank charter granted under the Trump administration.

Erebor has signed a non-binding letter of intent with Banco de Venezuela to provide correspondent banking services. Erebor and outside advisers say such a relationship could ease foreign-exchange flows into Venezuela and create a channel for transactions involving the United States, but the agreement is not finalized.

Sen. Elizabeth Warren voiced “serious concerns” about how quickly the bank secured its charter and questioned whether political connections influenced the approval process.

Company executives and outside advisers are in talks with potential investors about a larger raise that would value the company at least $8 billion. Representatives involved described the discussions as preliminary and added that terms remain fluid.