According to the Financial Times, PayPal co-founder Peter Thiel and other tech billionaires plan to establish a bank called Erebor, focusing on serving startups in the fields of cryptocurrency, artificial intelligence, manufacturing, and defense technology. Erebor has applied for a national banking license from the Office of the Superintendent of the Currency in the United States.
The bank aims to fill the market gap left by the collapse of Silicon Valley Bank (SVB). It is reported that SVB has provided services to cryptocurrency companies including BlockFi, Circle, and Avalanche, as well as other venture backed startups, but went bankrupt in 2023 due to financial investment mistakes.
Erebor was led by Palmer Luckey, co-founder of defense technology company Anduril, and supported by Founder Fund founded by Joe Lonsdale and Thiel, co founders of Palantir. The two co CEOs are Owen Rapaport, co-founder of software company Argus, and Jacob Hirshman, former Circle consultant. Erebor plans to include stablecoins in its balance sheet, but the specific currency has not yet been identified.
