A group of billionaires led by Peter Thiel, Palmer Luckey and Joe Lonsdale has announced plans to launch a new financial services firm named Erebor.
The news, first reported this week by the Financial Times, reveals that the bank will operate in the United States under a national charter.
Billionaires Plan Erebor Bank to Serve Crypto Customers
Erebor aims to fill the void left when Silicon Valley Bank collapsed in March 2023 by focusing on startups and cryptocurrency companies that struggled to find support.
To make this happen, the founders are securing a US bank charter and raising capital from their venture networks.
Erebor aims to mirror the role SVB played for young tech firms. It will focus on venture capital-backed startups in areas such as artificial intelligence, defence, manufacturing and cryptocurrencies.
The founders believe many of these firms still struggle to access banking services under tighter regulations.
Founders and Investors
Peter Thiel’s Founders Fund is among the early backers of Erebor. Thiel co-founded PayPal and has long supported Bitcoin and digital assets.
Palmer Luckey, who started defence contractor Anduril, and Joe Lonsdale, founder of venture firm 8VC, are also involved. Their combined networks bring deep links to both tech and finance.
Charter and Services
Erebor filed for a national bank charter with the Office of the Comptroller of the Currency, and this charter will let it take deposits, offer loans and provide payment services.
The firm plans to add stablecoins to its balance sheet, though it has not said which dollar-pegged tokens it will hold. Offering custody and trading of stablecoins may help it compete with other banking options.
Learning from SVB
Silicon Valley Bank collapsed because it held too many low-yield bonds and could not meet a sudden surge of withdrawals. That bank served clients such as BlockFi, Circle and Avalanche.
Erebor’s founders say they will adopt stronger risk controls and diversify their assets to avoid a similar fate. They believe a focus on early-stage firms means they must build resilient systems from day one.
Leadership Team
Erebor will be co-led by Owen Rapaport and Jacob Hirshman.
Rapaport co-founded software firm Argus and brings experience in enterprise tech.
Hirshman played an advisory role at Circle, a major stablecoin issuer. This leadership duo combines banking know-how with digital asset expertise to guide the new firm.
Erebor’s launch comes as the US policy towards digital assets is shifting. The report notes that Donald Trump’s administration may push for lighter regulation of crypto.
That environment could speed adoption of stablecoins and other tokenised assets. At the same time, banks remain cautious about serving high-risk clients under new rules.
Beyond crypto, Erebor wants to be a major lender to early-stage startups that traditional banks shy away from. Tighter capital rules have made some banks pull back from lending to firms with thin track records. Erebor aims to fill that gap by offering loans, credit lines and treasury services tailored to growth-stage businesses.
Also Read: U.S. SEC Gives A Clean Chit To PayPal In Its PYUSD Stablecoin Case, Details Inside