Erebor secured funding from SBI.
The stablecoin-native bank will be receiving a $100M investment from SBI Holdings in Japan to expand its customer base across startups and deep tech.
SBI Holdings is related to the SBI Group, which is the issuer for JPYSC stablecoin.
JPYSC was launched back in June, and more recently, SBI partnered with Solana and revealed JPYSC stablecoin lending opportunities.
As part of its announcement for the Erebor investment, it also revealed future plans to integrate U.S. Dollar denominated stablecoins, such as RLUSD and USDC.
Over the summer, Erebor was linked to a separate $1.5B raise.
Erebor Deposit Growth
Erebor has grown a lot in 2026.
The entity founded by Palmer Luckey and other successful entrepreneurs is targeting a new banking institution model for tech-friendly companies.
Running on stablecoins in the back-end and accepting stablecoin withdrawals and deposits, Erebor is building for a 24/7 balance transfer and settlement future.
According to the SBI statement, it is currently manages $7B in deposits, showing a substantial increase from Erebor’s $4B deposits a few months earlier in.
Its potential next round raise may value the bank at just under $10B.
Stablecoin Banking and Insurance
One of the key strengths Erebor had going for its start into the banking world is the national trust charter approved by the Office of the Comptroller of the Currency (OCC).
The OCC published many conditional and final approvals this year for digital asset firms, fintechs, and stablecoin issuers wishing to engage in regulated stablecoin activity.
Recently, OCC released its final Genius Act rules.
However, the differentiator for Erebor is its offering for account balance protection under the Federal Depository Insurance Corporation (FDIC).
For those entities looking to issue and manage stablecoins and its reserves under the Genius Act, FDIC insurance will likely not apply in the same way as on bank deposits held by traditional banking institutions.
The intent for Erebor is thus to preserve deposit growth by offering insurance, while using stablecoins and blockchain technology to improving operations for its clients.
Ultimately, it will be difficult to do so without any form of insurance on balances – stablecoins or not.
A few months back, FDIC ruled out insurance protection for stablecoins.
