Tech billionaires Peter Thiel, Palmer Luckey, and investor Joe Lonsdale plans to launch a new U.S. bank called Erebor. This soon-to-be launched digital bank aims to provide start-ups and crypto firms with the everyday accounts and loans services they lost after Silicon Valley Bank’s 2023 collapse.
Unlike traditional banks, Erebor promises fast and fully online banking access without physical branches. The bank’s founders list includes Palmer Luckey, known for Anduril and Oculus, and venture investor Joe Lonsdale. They say Erebor will fill the gap left by Silicon Valley Bank, keeping payrolls safe and letting growing firms tap credit without long waits.
The group has already filed for a national bank charter. The charter shows Erebor will keep its head office in Columbus, Ohio, with a small base in New York, and will run almost all services online.
According to Financial Times, the filing also states that Erebor wants to hold dollar-pegged stablecoins on its own books and become, in its words, “the most regulated entity conducting and facilitating stablecoin transactions.” Backers say using digital cash will let young firms settle bills in minutes rather than days.
In its application for a banking charter, Erebor stated that the bank will be a national bank ”providing traditional banking products, as well as virtual currency-related products and services, for businesses and individuals.”
The filing added that the bank would “differentiate itself” by doing business with customers that “are not well served by traditional or disruptive financial institutions, in particular with respect to insufficient access to credit.”
Joe Lonsdale confirmed his stake, telling Reuters he is “a proud investor in this project.” Luckey and Thiel are set to have a leading role in the bank but they will not handle daily operations. Two former finance managers, Owen Rapaport and Jacob Hirshman, will share the chief executive role.
Erebor hopes to win approval and open next year. Analysts note that its success will hinge on tight risk controls, yet the plan shows specialist banking still has room to grow in tech circles after the fall of Silicon Valley Bank.
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