Erebor Bank, the national bank founded by Oculus creator Palmer Luckey and backed by Peter Thiel’s Founders Fund, has tightened access to its free stablecoin-to-fiat conversion feature. The policy change, effective September 15, 2026, targets trading firms like Wintermute that were using the service for high-frequency arbitrage rather than conventional banking needs. In just six months since launching in February 2026, the bank has accumulated approximately $4 billion in deposits and carries an $8 billion valuation, positioning it among the top 200 US banks by deposit size. Regular customers retain complimentary access while affected trading firms will face fees or need alternative solutions. Erebor is also expanding its crypto-friendly banking infrastructure through partnerships like the one with Infinite for hybrid fiat and stablecoin business accounts.
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