Crypto bank Erebor raises $350 million, led by Lux Capital.
According to Axios, banking startup Erebor has completed a new $350 million funding round, led by Lux Capital, after receiving approval from the Federal Deposit Insurance Corporation (FDIC). Sources familiar with the matter revealed that Erebor's existing investors also include Founders Fund, 8VC, and Haun Ventures. The company is valued at approximately $4.35 billion.
The FDIC reportedly approved Erebor's deposit insurance application last week, making it a newly established national bank. Founded in 2025 by Anduril CEO Palmer Luckey and Joe Lonsdale, Erebor received early support from Peter Thiel and Haun Ventures. According to its banking license application, Erebor plans to offer both traditional banking services and crypto-related products and services, targeting businesses in the US innovative economy, particularly technology companies focused on virtual currencies, artificial intelligence, defense, and manufacturing, as well as payment service providers, investment funds, and trading institutions. Erebor is expected to officially launch operations next year.
