Peter Thiel, co-founder of PayPal, has partnered with a group of tech investors to build a new bank focused on supporting startups in industries such as crypto, artificial intelligence (AI), defense, and manufacturing.
After the collapse of Silicon Valley Bank (SVB), many startup companies lost a major financial partner. The Financial Times reported that this new project, called Erebor, hopes to fill that gap.
The initiative is being led by Palmer Luckey, who also co-founded defense firm Anduril. Thiel’s Founders Fund and Palantir co-founder Joe Lonsdale are also backing the plan.
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According to the Financial Times, Erebor has already applied for a national banking license through the Office of the Comptroller of the Currency, which oversees US banks.
Erebor aims to work with venture-backed startups that are often turned away by traditional banks. The bank’s focus will be on tech companies building in areas that can be challenging for larger banks to understand or support, such as AI, crypto platforms, defense systems, and industrial tools.
The leadership team will include two co-CEOs: Owen Rapaport, who co-founded software firm Argus, and Jacob Hirshman, who previously advised the crypto company Circle. Their backgrounds combine experience in technology, banking, and digital assets.
One notable feature of Erebor is its plan to hold stablecoins, cryptocurrencies pegged to the US dollar, on its balance sheet.
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