Billionaire duo Peter Thiel and an elite group are set to establish a fresh banking institution, catering specifically to burgeoning cryptocurrency ventures, according to reports.
In the ever-evolving world of finance, a new player has entered the scene: Erebor Crypto Bank. Officially launched on July 2, 2025, this crypto-friendly banking institution is specifically targeted at startups in the crypto, bitcoin, AI, defense, and manufacturing sectors [1][2][3]. The bank's inception was prompted by the collapse of Silicon Valley Bank in 2023, which previously served as a key banking partner for risky startups, including those in the crypto and tech industries [1][2][3].
### Launch Details
The brainchild of tech billionaires such as Palmer Luckey (founder of Oculus VR and co-founder of defense contractor Anduril), Peter Thiel (co-founder of PayPal and Palantir), and Joe Lonsdale (founder of 8VC) [1][2][3], Erebor is led by Co-CEOs Owen Rapaport and Jacob Hirshman, formerly an adviser at stablecoin issuer Circle, with Mike Hagedorn serving as senior executive vice-president and president [2][3]. Based in Columbus, Ohio, with a satellite office in New York [1][2], the bank aims to fill the gap left by the demise of Silicon Valley Bank.
### Focus Industries
Erebor's primary focus is on serving industries that are underserved by traditional banks, including cryptocurrencies/bitcoin, artificial intelligence (AI), defense, manufacturing, and other riskier startups [1][2][3][4]. The bank also targets individuals working in or investing in these sectors, including non-U.S. businesses seeking U.S. banking access [3].
### Purpose and Services
Erebor's mission is twofold: to provide traditional banking products such as loans and payroll services, combined with blockchain-powered features, including the ability to deposit U.S. dollars, convert them into stablecoins, and facilitate global payments in seconds [1][2]. The bank has applied for a national bank charter to operate under full U.S. regulatory oversight, positioning itself as one of the most regulated entities in stablecoin transactions [1][2][4].
This innovative approach is designed to cater to startups and investors who have struggled to find reliable banking post-SVB collapse [2][3]. Erebor intends to “make the dollar more useful” by offering faster, secure, and crypto-compatible banking options that meet the needs of tech companies with distributed and global teams [1].
In a nod to its origins, Erebor, the new bank, is named after a popular fantasy series, The Lord of the Rings. The bank aims to take the place of Silicon Valley Bank (SVB), a crypto-friendly bank that went bankrupt in 2023. With its launch, Erebor Crypto Bank promises to bring a new era of banking to the tech and crypto industries, one that is secure, regulated, and tailored to the unique needs of its clients.
- Erebor Crypto Bank, a new venture spearheaded by tech industry heavyweights, seeks to serve industries often overlooked by traditional banks, such as cryptocurrencies, artificial intelligence, defense, manufacturing, and riskier startups, as well as individual investors in these sectors.
- The bank, named after a popular fantasy series, aims to provide traditional banking services with added features using blockchain technology, including fast and secure global payments, making the dollar more useful for tech companies with distributed and global teams.
- As a regulated entity, Erebor Crypto Bank seeks to combine the security of traditional finance with the innovative nature of cryptocurrency and technology, offering a solution to the challenges faced by startups and investors post-Silicon Valley Bank collapse.
