Bank of the Week · Week of Nov 4, 2026

Bank of the Week: Erebor Bank, the Tolkien-named tech bank on the old Ohio Pen grounds

Illustration of a modern brick-and-glass office building in a downtown arena district at dusk

Illustration, not a photo of the actual building. BankNearMe.com is not affiliated with Erebor Bank, N.A..

A brand-new national bank for the "innovation economy", headquartered in the Arena District, which was built on the site of the old Ohio Penitentiary.

At a glance

Founded	Chartered and FDIC-insured Feb 6, 2026 (founded as a company in 2025)
Headquarters	500 Neil Ave, Suite 140, Columbus, OH 43215
Insured?	Yes, Member FDIC (insured since Feb 6, 2026)
FDIC Cert #	59378 (OCC charter #25357)
Type	National bank, Federal Reserve member, regulated by the OCC; digital-only, no public branches
Website	erebor.bank

The story

The name. Erebor is the Lonely Mountain in J.R.R. Tolkien's books, home to the dwarves' treasure hoard. Like other Peter Thiel–linked ventures (Palantir, Anduril), the bank takes its name from Tolkien (The Block/Axios, Dec 22, 2025).

The founders. Erebor was founded in 2025 by Palmer Luckey (founder of defense company Anduril), Owen Rapaport, Jacob Hirshman, Aaron Pelz and Trevor Capozza. Rapaport and Hirshman lead the bank, and Hirshman is described as co-founder and chairman (Robinhood Ventures release, Sep 2026; Reuters, Jul 2, 2025). Palantir co-founder Joe Lonsdale called himself a "proud investor" (Reuters). Some outlets describe him as a co-founder; Erebor's own description lists the five names above.

Charter timeline. The OCC received the application on June 12, 2025, granted preliminary conditional approval on Oct 15, 2025, and the charter took effect Feb 6, 2026 (OCC Corporate Applications Search). The FDIC approved deposit insurance on Dec 16, 2025. Conditions include a minimum 12% tier 1 leverage ratio for its first three years (FDIC press release). Banking Dive reported it was the first new national bank chartered under the current administration (Banking Dive).

What it does and who it serves. Its charter application targets "innovation economy" businesses: technology companies focused on virtual currencies, AI, defense and manufacturing, plus payment firms, investment funds and trading firms. It also serves select high and ultra-high-net-worth individuals who work for or invest in those companies. Products include lending, deposits, stablecoin-related services and treasury management (Erebor charter application, OCC). The OCC allowed it to hold limited crypto on its balance sheet to pay blockchain "gas fees" (OCC conditional approval letter). One reported loan: it led a $200 million credit facility for nuclear startup Valar Atomics (CoinDesk/FT, Aug 11, 2026).

Growth and funding. It raised $350 million at a $4.35 billion valuation in December 2025, led by Lux Capital (The Block/Axios). Deposits reportedly grew from $1.1 billion (March 2026) to $4.6 billion (July 2026). In August it was reported to be in talks to raise about $1.5 billion at about $9.5 billion (CoinDesk/FT). Erebor said in September 2026 that deposits topped $7 billion, when Robinhood Ventures Fund I bought $30 million of preferred stock (Robinhood Ventures release). Whether the $1.5 billion round closed is unconfirmed.

Scrutiny. Sen. Elizabeth Warren, ranking member of the Senate Banking Committee, criticized the approval as fast-tracked for politically connected founders and called the venture risky. She later asked the OCC and Luckey about a reported fundraising memo (Senate Banking Committee minority statement; follow-up letter). These are a senator's allegations. We found no regulatory finding of wrongdoing as of Nov 4, 2026.

The neighborhood: Columbus's Arena District

Illustration of a historic market hall, a lighted arts-district street and a riverfront park with old stone walls — Illustration (not a photo) inspired by the North Market, the Short North and North Bank Park.

Erebor's main office is at 500 Neil Avenue, a four-story, roughly 130,000-square-foot brick office building with a sweeping curved-glass corner. It sits at the northern edge of the Arena District beside I-670, on the site of the former Hamilton Parker Brick Yard (Lupton Rausch Architecture). Its anchor tenant is Chipotle's Columbus restaurant support center, which opened there in 2022 (Chipotle newsroom).

A prison turned playground. The 75-acre Arena District rose from the grounds of the Ohio Penitentiary. It opened in 1834, closed in 1984, and its walls were torn down starting in 1997. Its history includes the 1930 fire that killed 322 prisoners, and inmates included O. Henry and Confederate Gen. John Hunt Morgan (Columbus Dispatch, 2023; Columbus Dispatch, 2010). Reclaimed prison stone now frames the Arena Grand Theatre and walls in North Bank Park.

Nearby landmarks:

Nationwide Arena, home of the NHL's Columbus Blue Jackets, opened in 2000 on former penitentiary land (Nationwide Arena).
Huntington Park, home of the AAA Columbus Clippers (Arena District fact sheet).
North Market, a historic public food market, and the Short North arts district, both within walking distance (Arena District fact sheet; LoopNet).
The Scioto River and the Greater Columbus Convention Center are close by (Arena District fact sheet).

Can you bank here?

Probably not as an everyday customer. Erebor serves businesses in tech, defense, AI, crypto and finance, plus select high-net-worth individuals tied to them (charter application).
No branches. The bank says it "will not operate any physical branches." Its Columbus main office and its New York and Newport Beach, California administrative offices are not open to the public for deposits or withdrawals (Erebor CRA Strategic Plan).
Deposits are FDIC-insured up to $250,000 per depositor, per ownership category (FDIC Cert 59378).
Looking for a bank you can walk into? See FDIC-insured branches in Columbus or find banks near you.

Frequently asked questions

Is Erebor Bank FDIC insured?

Yes. Erebor Bank, N.A. has been FDIC-insured since Feb 6, 2026, under FDIC Certificate #59378.

Who founded Erebor Bank?

Erebor was founded in 2025 by Palmer Luckey, Owen Rapaport, Jacob Hirshman, Aaron Pelz and Trevor Capozza. Joe Lonsdale is an investor.

Where is Erebor Bank located?

Its main office is at 500 Neil Avenue in the Arena District of Columbus, Ohio, with administrative offices in New York and Newport Beach, California. It has no public branches.

Why is it called Erebor?

Erebor is the Lonely Mountain in J.R.R. Tolkien's books, home to a dwarven treasure hoard.

Sources

Facts as of Nov 4, 2026. Bank of the Week is an editorial feature. It is not an endorsement or paid placement and is not financial advice. Know a bank with a great story? Suggest a bank.