SBI Holdings bets $100M on blockchain bank Erebor

What's the deal? Japan's SBI Holdings will invest $100 million in Erebor, the US digital bank co-founded by Anduril's Palmer Luckey, Owen Rapaport, and Jacob Hirshman. The late-stage investment will be made through SBI Holdings USA.

What does Erebor do? The Columbus, Ohio-based bank serves companies in AI, defense, energy, and other advanced industries, offering growth financing, asset-based lending, and equipment financing. Its in-house core banking system settles payments on blockchain around the clock, including weekends, and handles stablecoin deposits and withdrawals.

Why now? Erebor began operating in February 2026 after securing a national bank charter from the Office of the Comptroller of the Currency and FDIC deposit insurance. Its deposits topped $7 billion by September 2026. The SBI deal follows Robinhood Ventures Fund I's $30 million purchase of Erebor preferred stock in October.

Why it matters: SBI said the investment will strengthen its US business base and open the door to "broad collaboration," without naming specific products. The Japanese group has pushed deep into digital assets, issuing JPYSC, Japan's first trust-type yen stablecoin, distributing USDC and RLUSD in Japan, and holding stakes in Ripple and Circle.

By the numbers: At $100 million, the round ranks in the 92nd percentile of all-time late-stage VC deals for US big-data companies, based on a sample of 503 rounds.

The signal: Erebor's charter application states its goal is to be "the most regulated entity conducting and facilitating stablecoin transactions." For SBI, whose own stablecoin and correspondent-banking ambitions align with Erebor's target clients, the bet is on regulated dollar rails — though with foreign-bank deposits at just $36 million in September, the strategic intent is clearer than the near-term payoff.

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