Tech billionaires including PayPal co-founder Peter Thiel, Anduril co-founder Palmer Luckey, and Palantir's Joe Lonsdale are establishing Erebor Bank, a new financial institution designed to serve cryptocurrency firms and AI startups. The initiative directly addresses the banking void left by the collapse of Silicon Valley Bank (SVB) in March 2023, which previously served major crypto entities like Circle (USDC issuer) and Avalanche.
Erebor has filed for a national bank charter with the Office of the Comptroller of the Currency and plans to focus on venture-backed companies in cryptocurrency, artificial intelligence, defense, and manufacturing – sectors often deemed too risky by traditional banks. The bank will be led by co-CEOs Owen Rapaport (Argus software co-founder) and Jacob Hirshman (former Circle adviser). Notably, Erebor intends to hold stablecoins on its balance sheet, though specific tokens remain undisclosed.
This development occurs amid a favorable U.S. regulatory climate under President Trump, highlighted by the passage of the stablecoin-focused FIT Act and an anticipated market structure bill. SVB's 2023 collapse – triggered by bond investments and a tech-sector bank run – previously caused crypto investment funds to lose 10% of AUM in one week and created lending shortages across the venture ecosystem.