Erebor, a new digital bank catering to the needs of startups and crypto companies. It’s poised to revolutionize the entire financial technology industry! Palmer Luckey, the entrepreneur behind Anduril Industries and Oculus, launched Erebor. If the company closes on at least $225 million in the new round, it would be valued at a whopping $2 billion. The company’s launch was made possible by increasing acceptance of cryptocurrency by the Trump administration.

The venture is supported by well-known Silicon Valley firms Founders Fund and 8VC. Just this week, Erebor applied for a U.S. bank charter, signaling its desire to compete and operate as its own, distinct, fully regulated financial institution. As co-CEOs, Jacob Hirshman and Owen Rapaport will lead Erebor, and Mike Hagedorn will be president.

Palmer Luckey’s Erebor has stormed into the financial landscape with huge support from major players. Peter Thiel— most famously of bridge-building repute, but big on Trump-propping super PACs —is one of the early investors. Joe Lonsdale, an earlier supporter of the America First PAC that funded Trump’s 2024 reelection primary, is throwing his weight behind Erebor.

The name Erebor is taken from J.R.R. Tolkien’s The Lord of the Rings.

"Lonely Mountain" - J.R.R. Tolkien's "The Lord of the Rings"

In J.R.R. Tolkien’s fantasy realm, Erebor—the “Lonely Mountain”—is a dwarven kingdom known for its great hoard of treasure. This naming decision is a clever choice that signals the firm’s goal of solidifying itself in the financial fortress of our new digital world.

Luckey’s triumph lives on outside the world of money. He is currently the CEO and co-founder of Anduril Industries. The big defense technology company just raised $2.5 billion and hit a $30.5 billion valuation in June. That was earlier in his career—Luckey founded the virtual reality company Oculus in 2012. Exactly two years later, he sold it to Facebook for a mind-boggling $2 billion.