SBI puts $100 million into Erebor, the Palmer Luckey-backed US digital bank

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.