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Erebor Wins FDIC Insurance and Raises $350 Million at $4.35 Billion Valuation

The approval opens a 12-month window before expiration, highlighting Erebor’s plan to bank the U.S. innovation economy.

Overview

  • Lux Capital led the $350 million round that values the Palmer Luckey– and Joe Lonsdale–founded startup at $4.35 billion, with participation from Founders Fund, 8VC and Haun Ventures.
  • The FDIC granted deposit insurance last week, which remains valid for 12 months and will lapse if the bank is not formally established or granted an extension.
  • Erebor previously received preliminary conditional approval from the Office of the Comptroller of the Currency, furthering its path toward a national bank charter.
  • Regulatory filings state the bank will target businesses in virtual currencies, artificial intelligence, defense and manufacturing, along with payment providers, investment funds and trading firms.
  • Operations are expected to begin in 2026, with the venture launched in 2025 to address gaps that followed Silicon Valley Bank’s 2023 collapse.