Digital bank Erebor secured major funding as investors back regulation.
The company raised three hundred fifty million dollars.
Sources said.
Axios reported the financing values Erebor at four billion dollars.
The digital first bank has not yet launched operations publicly.
Founders include Palmer Luckey and venture capitalist Joe Lonsdale cofounder.
Erebor targets crypto artificial intelligence defense and advanced manufacturing clients.
Traditional banks remain cautious serving those sectors following industry turmoil.
Lux Capital reportedly led the round alongside prominent venture firms.
Investors included:
- Founders Fund 8VC and
- Haun Ventures also participating.
The bank name references Tolkien novels echoing Thiel linked companies.
Regulatory approvals strengthened confidence in Erebor upcoming launch plans national.
US regulators granted conditional approval including deposit insurance clearance recently.
The Office of the Comptroller approved Erebor national bank charter.