Digital-first Erebor Bank is discussing a new fundraising round that could value the lender at no less than $8 billion, roughly double its $4.35 billion valuation at the end of last year, Bloomberg reported Thursday, citing people familiar with the talks.

Founded by Oculus creator Palmer Luckey and backed by leading Silicon Valley investors, including Andreessen Horowitz, Peter Thiel’s Founders Fund, and Lux Capital, the bank has built its business around defense technology, hard tech and crypto clients, expanding lending for industrial companies while positioning itself as an alternative following Silicon Valley Bank’s collapse.

Its offerings include blockchain-enabled payments, crypto-collateralized loans and financing for AI infrastructure.

In February, Erebor Bank received approval to become the first new national bank chartered during President Donald Trump’s second term in February.

The funding plan comes as deposits continue to grow rapidly following the company’s launch earlier this year.

The startup has increased deposits to over $4 billion from $1.1 billion at the end of March while adding nearly 400 customers, according to the report. Luckey said recent deposit growth has been driven by hundreds of new customers rather than companies he controls.