A new banking initiative is emerging in Silicon Valley, spearheaded by notable tech figures. Palmer Luckey, Peter Thiel, and Joe Lonsdale are among those backing Erebor Bank, which aims at supporting crypto firms, AI startups, defense tech, and advanced manufacturing—sectors left stranded after the collapse of Silicon Valley Bank (SVB) in 2023.
Filling SVB’s Gap
Prior to its collapse, SVB was instrumental in financing early-stage technology. Its exit has created a vacuum that conventional banks are reluctant to fill. Erebor Bank intends to occupy that space.
ICYMI: A new US bank backed by @PalmerLuckey and @JTLonsdale aims to replace the gap left by SVB. The bank has applied for a national charter to serve crypto, AI, and defense startups, focusing on stablecoins and digital assets. — levinocrypto (@levinocryp45219) July 3, 2025
This bank operates digitally, with its headquarters in Columbus, Ohio, also maintaining a presence in New York, aiming to build a futuristic institution that appreciates the rapid and intricate nature of startups, especially in the crypto field.
A Stablecoin-Backed Blueprint
Erebor sets itself apart by aiming to actively endorse stablecoins. The bank has already submitted an application for a national banking charter, intending to include stablecoins within its financial structure to better serve clients involved with tokenized assets or global payments. The initiative is being driven by Co-CEOs Owen Rapaport and Jacob Hirshman, who possess considerable expertise in crypto infrastructure.
Founders and Mission
Palmer Luckey, the founder of Oculus and the defense firm Anduril, is financing the project but will not engage in daily operations. Peter Thiel and Joe Lonsdale offer substantial connections to venture capital through their respective companies, Founders Fund and 8VC. The leadership team, which includes Rapaport, who previously worked at Circle, envisions Erebor as a lifeline for neglect sectors following SVB’s downfall.
The vision is to build a bank that embraces innovation rather than shunning it. Where others perceive risk, Erebor identifies opportunity, branding itself as the initial comprehensive banking option designed to foster the tools and trends shaping the next decade.
Why Now May Be the Right Time
The timing of Erebor’s launch coincides with a startup ecosystem still reeling from SVB’s breakdown, as founders find it challenging to locate banking partners that comprehend their business models. Additionally, stablecoin regulation is gradually taking shape, with firms like Circle and Anchorage shifting towards regulated banking models. Erebor aims to stay ahead of this trend.
The bank aspires to become a highly regulated entity that deals with stablecoins, offering a combination of safety and speed that few rivals can provide.
What Lies Ahead
Despite robust backing, Erebor has a long way to go regarding regulatory compliance. Securing a national charter requires meeting criteria established by the OCC, Federal Reserve, and other regulatory bodies. Given that crypto remains a contentious subject for numerous regulators, the bank’s digital asset strategy may encounter intense scrutiny.
However, Erebor steps into this space at a time when the regulations are clearer and demand is high. The expansions of Circle and Anchorage have already shown that there is a genuine need for crypto-native banking options that operate within the confines of the law.
Looking Forward
Erebor is not attempting to replicate the past but instead is advancing toward the future with a focus on stablecoins, secure custody, and intelligent lending. Whether it becomes the preferred bank for tech startups or simply fosters further dialogue, it is already part of the next chapter in the narrative of crypto and fintech. The gap left by SVB is still present, and Erebor believes it has the blueprint to bridge it.
