Bijingjie News, citing Bloomberg, reports that the digital bank Erebor is in financing talks, and its valuation is expected to reach $8.0 billion, nearly double its $4.35 billion valuation at the end of last year. Erebor’s deposits grew rapidly after operating for a few months, and if the financing is successful, it will become one of the largest financing events among U.S. digital banks in recent times. The bank was founded by Palmer Luckey, the founder of Oculus, and has received backing from major Silicon Valley investors including Andreessen Horowitz, Peter Thiel’s Founders Fund, and Lux Capital. Customer deposits have risen from $1.1 billion at the end of March to more than $4.0 billion, adding nearly 400 new customers during the period, showing early demand for its banking platform. Luckey said the increase in deposits came from new customers, not from companies he controls, rebutting claims that its growth depended on affiliated entities. Erebor has also made regulatory progress, allowing it to expand its business under the federal banking framework.

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GateUser-53a6e1a8

· 9h ago

Palmer Luckey's transition is quite drastic, from VR headsets to digital banking — an even bigger leap than my investment portfolio.

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SlowerThanBlock

· 12h ago

1.1 billion to 4 billion in deposits, 400 new customers, which averages out to 10 million per person? The quality of these customers is impressive.

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L2AlleyRunner

· 12h ago

Last year 4.35 billion, this year 8 billion – that doubling speed is crazier than my altcoins, but at least they have real deposits behind it.

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Frictionless

· 12h ago

Luckey specifically emphasized that the deposits are not self-financing. This statement itself is very interesting; those who know, know.

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SlippageSigh

· 12h ago

The expansion of the federal banking framework means it can attract more depositors? Traditional banks will lose sleep over this.

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GateUser-2bbf8435

· 12h ago

Oculus founder starts a bank, will they give depositors VR headsets as account opening gifts?

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Erebor Bank seeks $8 billion valuation as digital banking business thrives

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