Key Takeaways
- Erebor is a new digital bank led by Palmer Luckey and backed by top tech investors, focused on bitcoin and technology sectors.
- The bank has applied for a national charter and will be headquartered in Columbus, Ohio, with co-CEOs Owen Rapaport and Jacob Hirshman.
- Erebor seeks to fill the gap left by Silicon Valley Bank’s collapse by serving startups and investors in need of reliable banking services.
A group of tech billionaires led by Anduril co-founder Palmer Luckey, along with Peter Thiel’s Founders Fund and Palantir co-founder Joe Lonsdale, are set to launch Erebor, a new U.S. bank focused on the crypto and bitcoin sectors.
The Financial Times reported on Wednesday that Erebor will target businesses in artificial intelligence, bitcoin, crypto, defense, and manufacturing, as well as individuals working in these industries.
Bank charter application & leadership
Erebor has applied for a national bank charter and plans to be headquartered in Columbus, Ohio, with a secondary office in New York.
The digital-only bank will be led by co-CEOs Owen Rapaport and Jacob Hirshman.
According to the report, Hirshman previously served as an adviser to the stablecoin company Circle.
Filling the void left by SVB
Silicon Valley Bank’s collapse in March 2023 left early-stage technology firms and venture capitalists scrambling for reliable banking partners.
SVB had been known as a key banking channel for startups considered too risky by traditional banks.
Erebor’s charter application states that it plans to hold stablecoins—bitcoin-pegged assets designed to maintain stable value—on its balance sheet.
Erebor aims to serve technology businesses and investors who have struggled to access capital following the SVB crisis.
The new bank intends to support both companies and individuals in the technology and bitcoin space who have faced challenges accessing banking services since SVB’s failure.
