Crypto Bank Erebor Seeks New Funding at More Than $8 Billion Valuation
Summary
- U.S. crypto bank Erebor has begun talks to raise new funding at a valuation of more than $8 billion.
- Erebor is targeting nearly double the $4.35 billion valuation it received in a $350 million fundraising round last December.
- With deposits climbing from $1.1 billion to $4.05 billion, Erebor is aiming to return to profitability this year and launch U.S. dollar stablecoin deposit and payment services.
Forecast Trend Report by Period
U.S. crypto bank Erebor is seeking new funding at a valuation of more than $8 billion.
Erebor has entered early-stage talks to raise fresh capital at a valuation above $8 billion, according to The Block and other media reports on July 2. The precise valuation is still being discussed.
The target is nearly double the $4.35 billion valuation the company received in a $350 million funding round in December.
Erebor is a crypto-focused bank founded by Palmer Luckey, the founder of U.S. defense contractor Anduril, and backed by PayPal co-founder Peter Thiel. The bank officially launched in February after receiving a new federal banking charter in the U.S.
Growth has been steep. Erebor's deposits rose to $4.05 billion recently from $1.1 billion when it filed with regulators at the end of March. The bank is also aiming to turn profitable this year.
Erebor is also expanding its business. It is preparing to launch U.S. dollar stablecoin deposit and payment services. The bank also recently signed a memorandum of understanding with Venezuela's state-owned Banco de Venezuela to provide correspondent banking services.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul