- SBI Holdings is investing $100 million in Erebor Bank, the US digital lender co-founded by Palmer Luckey.
- The bank serves defense, AI and energy companies and settles payments on blockchain rails around the clock.
- The deal, made through SBI Holdings USA, follows Robinhood Ventures’ $30 million stake.
SBI Holdings will invest $100 million in Erebor Bank, the Ohio-based digital lender co-founded by Anduril’s Palmer Luckey.
The deal gives SBI Holdings exposure to U.S. banking and round-the-clock blockchain settlement.
Why is SBI Holdings investing in Erebor Bank?
SBI Holdings confirmed that it will invest $100 million in Erebor Bank in a November 2 statement. The company has said that the money would flow through its U.S. subsidiary, SBI Holdings USA, Inc.
Erebor Bank, N.A. is based in Columbus, Ohio, and operates as a nationally chartered bank aimed at companies in defense, artificial intelligence, energy, robotics, and advanced manufacturing.
Owen Rapaport is co-founder and chief executive, while Jacob Hirshman is co-founder and chairman. Palmer Luckey, who co-founded the defense firm Anduril Industries, helped start the bank in 2025.
Prior to its launch, Erebor Bank secured a national bank charter from the Office of the Comptroller of the Currency (OCC) and deposit insurance from the Federal Deposit Insurance Corporation (FDIC). It began operating in February 2026, and by September, its deposits had passed $7 billion.
Erebor built its own banking system that records transactions on a blockchain, so payments can settle at any time, even on weekends. It also handles stablecoin deposits and withdrawals and connects to major payment networks.
SBI says its $100 million investment will help build its U.S. presence and could lead to closer work with Erebor; however, it didn’t mention what specific products they might build together.
Notably, Robinhood Ventures Fund I already put $30 million into Erebor’s preferred stock in October.
Is the deal related to SBI’s stablecoin buildout?
SBI issues JPYSC, which it calls Japan’s first yen stablecoin backed by a trust structure, developed with Startale Group and issued by SBI Shinsei Trust & Banking. It also handles the FG-pegged stablecoins USDC and RLUSD in Japan and holds positions in Ripple Labs and Circle Internet Group.
Throughout 2026, SBI has been signing partners around that token. BlackRock, SBI and Startale, for instance, agreed in late October to study linking tokenized money market funds to JPYSC.
Days later, SBI disclosed a memorandum of understanding with CRB Group, the parent of U.S. lender Cross River, that includes putting JPYSC on Cross River’s platform as a settlement option for cross-border and tokenized transactions.
The company’s stake in a chartered U.S. bank that already settles on-chain only gives it another live rail in the American market.
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FAQs
How much is SBI investing in Erebor Bank?
SBI Holdings will invest $100 million through its US subsidiary SBI Holdings USA, Inc., according to SBI's November 2 statement.
Who founded Erebor Bank?
Erebor was co-founded in 2025 by Palmer Luckey of Anduril Industries, alongside Owen Rapaport, who serves as co-founder and CEO, and chairman Jacob Hirshman, per SBI's statement.
What makes Erebor relevant to crypto?
Erebor runs an in-house core banking system that settles transactions on blockchain rails at any time, including weekends, and supports stablecoin deposits and withdrawals, according to SBI. Its deposits exceeded $7 billion as of September 2026.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
