Crypto-friendly bank Erebor in talks to raise $1.5 billion at $9.5 billion valuation: FT
Crypto-friendly bank Erebor is reportedly in talks to raise $1.5 billion, which would nearly double its valuation to $9.5 billion. The bank is expanding its services to include lending and treasury management for sectors including crypto, AI, and defense.
Why it matters
The significant valuation increase for a crypto-focused bank signals growing institutional confidence in the integration of digital assets with traditional banking services.
Lux Capital, Human Capital, Valor Equity Partners, Andreessen Horowitz and SV Angel are expected to make large commitments in the fundraising round. Existing investors including 8VC and Haun Ventures are also set to take part, according to the report, which cited people familiar with the matter.
The fundraising comes as Erebor expands its deposit base and starts lending activity. Deposits reached $4.6 billion by the end of July, up from $1.1 billion at the end of March, the FT said.
Erebor targets companies working in crypto, artificial intelligence, defense and manufacturing. It also serves payment companies, investment funds and trading firms and its planned services include deposits, credit, stablecoin products, treasury management and payments.
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