Peter Thiel-Backed Bank Erebor Raises $350M At $4.35B Valuation

Erebor, a brand new digital financial institution backed by Peter Thiel and co-founded by Anduril chief Palmer Luckey, quietly raised $350M, valuing the agency at $4.35B as traders pour capital into crypto-adjacent finance once more.

Lux Capital led the spherical, and Axios reported that the increase additionally introduced in new traders alongside current backers comparable to Founders Fund, 8VC and Haun Ventures.

The fundraising arrives as US regulators transfer Erebor nearer to taking deposits, a milestone that also carries weight in a sector formed by the 2023 collapse of Silicon Valley Bank and the scramble that adopted for steady, regulated banking entry.

Erebor Advances Toward Launch After Regulatory Green Lights

The Office of the Comptroller of the Currency granted preliminary conditional approval for Erebor’s de novo nationwide financial institution constitution on Oct. 15, calling it a path for banks to have interaction in digital asset actions when carried out safely.

Comptroller of the Currency Jonathan V. Gould mentioned the choice confirmed the OCC “doesn’t impose blanket limitations to banks that need to interact in digital asset actions.”

The Federal Deposit Insurance Corp. adopted in December, approving Erebor’s deposit insurance coverage utility topic to situations, together with capital necessities and limits on adjustments to administration and possession earlier than opening.

The FDIC approval reportedly features a requirement for at the least $276M in preliminary paid in capital and a tier 1 leverage ratio of a minimum of 12% for the primary three years.

Stablecoin Focus Fuels Investor Appetite

Erebor has pitched itself as a tech and digital asset-focused financial institution, and the FDIC course of reportedly included a capital name settlement designed to make sure traders can inject extra funds if sure triggers are hit.

Axios described investor enthusiasm across the stablecoin banking angle as operating scorching, and the sharp bounce in valuation alerts that backers see a gap for a regulated financial institution that may serve crypto and frontier tech purchasers with out counting on the shrinking listing of keen incumbents.

The financial institution has not publicly set a launch date, although reporting has pointed to a gap in 2026 as soon as ultimate approvals and pre-opening necessities are cleared.

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