A group of tech billionaires led by Anduril co-founder Palmer Luckey are launching a new crypto-focused U.S. bank called Erebor to serve the technology sector, according to a Financial Times report on Wednesday.
The founding group reportedly includes Peter Thiel’s Founders Fund and Palantir (NASDAQ:PLTR) co-founder Joe Lonsdale.
Erebor has applied for a national bank charter and plans to serve technology businesses in artificial intelligence, crypto, defense and manufacturing sectors, as well as individuals who work at or invest in these companies.
According to its charter application, the digital-only bank will be headquartered in Columbus (WA:CLC), Ohio, with a secondary office in New York. It will be led by co-CEOs Owen Rapaport and Jacob Hirshman, who previously served as an adviser to stablecoin company Circle.
The bank plans to hold stablecoins on its balance sheet. Stablecoins are crypto assets pegged to currencies like the U.S. dollar and designed to maintain steady value backed by reserves.
Erebor aims to fill the void left by Silicon Valley Bank’s collapse. Before its liquidity crisis in March 2023, SVB had been a primary banking channel for early-stage technology firms and venture capitalists - entities often considered too risky by traditional banks. After SVB’s collapse, many startups faced difficulties accessing capital and meeting immediate obligations such as payroll.