Palmer Luckey’s Erebor, a bank serving the technology industry, has amassed more than $7bn in deposits since launching in February. It added more than $3bn in deposits over the past quarter and gained over 500 new customers during that period.
Palmer Luckey-backed Erebor Bank ends its free stablecoin-to-cash redemption offer after crypto trading firms, including Wintermute, use it for arbitrage. At launch earlier this year, the bank pitches the offer as an attractive way to attract new crypto customers.
The Pentagon is in talks to provide roughly $5 billion in lending to neocloud Fluidstack, an AI infrastructure company. Fluidstack is receiving advice on its loan application from Erebor Bank, a bank started by Palmer Luckey.
Erebor, a crypto-friendly bank, is negotiating a $1.5 billion funding round that would value the company at $9.5 billion. The bank’s total deposits surged from $1.1 billion in March to $4.6 billion by July, fueled by demand from clients in crypto, AI, and defense sectors.
