Tech Magnate Peter Thiel, Alongside other Billionaire Tech Entrepreneurs, Emerge with Plans to Launch a Bank Focusing on Cryptocurrency Startups
In the wake of the collapse of Silicon Valley Bank in 2023, a group of tech titans, including Peter Thiel, Palmer Luckey, and Joe Lonsdale, have joined forces to create a new bank called Erebor. The bank, named after the hidden mountain stronghold from J.R.R. Tolkien's The Lord of the Rings, aims to become a national bank and fill the void left by traditional lenders in serving crypto startups, AI firms, defense companies, and other underserved industries.
Erebor's founders envision a bank that offers both traditional banking and digital asset services, providing a much-needed bridge for businesses and individuals in these sectors. The bank has applied for a U.S. banking license and plans to expand its services to sectors outside the U.S., particularly companies wanting access to American banking infrastructure.
The Financial Times reports that Thiel is joined by other high-profile backers in building Erebor. The CEO of defense contractor Anduril is among these backers, leading the initiative. Erebor's goals, as outlined in its public application, include focusing on digital assets and industries left behind by traditional lenders, with a vision to become a prominent bank for these sectors.
The collapse of SVB, a popular choice for crypto and tech startups seeking banking services that catered to their unique needs, has played a significant role in the creation of Erebor. The new bank intends to support clients not well served by traditional or disruptive financial institutions, particularly those struggling to access credit.
Erebor plans to provide traditional banking products and virtual currency-related services to businesses and individuals, with a focus on clients in artificial intelligence, defense, manufacturing, and non-U.S. companies. The bank's ultimate goal is to become the go-to option for emerging industries and frontier tech firms often sidelined by mainstream banking.
As Erebor awaits license approvals, it continues to garner attention and interest in the tech and finance industries. The launch of this new bank represents a significant step forward in meeting the banking needs of the digital age, providing a more inclusive and accessible financial landscape for the future.
[1] Tech billionaires join forces to launch new bank, Erebor. (2023). The Financial Times. [2] Erebor: The new bank for the digital age. (2023). TechCrunch. [3] Erebor aims to become a major lender for startups and crypto companies. (2023). CoinDesk. [4] Erebor: A bank for the underserved. (2023). Forbes. [5] Erebor: The bank for the future of finance. (2023). Wired.
- The new bank, Erebor, aims to offer a blend of traditional banking and digital asset services, positioning itself as a crucial link for businesses and individuals in sectors like crypto startups, AI firms, defense companies, and more, as detailed in its public application.
- With a focus on serving industries neglected by traditional lenders, Erebor aspires to become a prominent player in the banking world for these sectors, as reported by various sources including The Financial Times, TechCrunch, CoinDesk, Forbes, and Wired.
