Palmer Luckey, CEO of Anduril Industries, has founded a new digital bank called Erebus, aimed at startups and cryptocurrency companies. The startup is raising at least $225 million at a valuation of $2 billion, backed by Founders Fund and 8VC.
Founders Fund’s Peter Thiel and 8VC’s Joe Lonsdale will also be investing in the company. The fundraise is ongoing and could change details. Erebor takes its name from JRR Tolkien’s “The Lord of the Rings,” referencing the “Lonely Mountain.” Luckey founded the bank, while Jacob Hirshman and Owen Rapaport are leading as co-CEOs. Mike Hagedorn will be the president.
Anduril cofounder Palmer Luckey also founded Oculus in 2012 and sold it to Facebook for $2 billion. He previously left Meta after donating to a pro-Trump group, but reunited with CEO Mark Zuckerberg in May for an Anduril-Meta US military partnership.
The Trump administration’s support for the crypto industry is on the rise, with moves such as creating a strategic bitcoin reserve and appointing venture capitalist David Sacks as Crypto Czar. Wall Street interest in crypto has grown after Circle’s IPO in June, with shares increasing over 113% since its public market debut.
Source: https://www.businessinsider.com/palmer-luckeys-new-digital-bank-erebor-valuation-2025-7