Thiel Joins Luckey & Lonsdale To Launch New Bank Aimed At Filling SVB Void For Stablecoins, AI, Defense & Advanced Manufacturing

A group of high-profile tech investors, including Palmer Luckey and Joe Lonsdale, are launching a new bank called Erebor, which has applied for a national banking charter in the US. Erebor aims to serve the "innovation economy" of start-ups and individuals in sectors like blockchain, AI, defense, and advanced manufacturing, which are often viewed as too risky by traditional lenders. The bank's founders say it will fill a gap left by the collapse of Silicon Valley Bank in 2023, which shook the tech sector's financial infrastructure. Erebor will offer traditional banking products, as well as virtual currency-related products and services, and will focus on customers underserved by both traditional and fintech institutions. The bank plans to become a dominant player in stablecoin transactions, a controversial corner of the cryptocurrency world. Erebor will be headquartered in Columbus, Ohio, and will be a digital-only bank, offering customer support and financial products exclusively through a smartphone app and website. The bank's founders will not be involved in day-to-day operations, which will be led by co-CEOs Jacob Hirshman and Owen Rapaport. Much about Erebor remains under wraps, including its equity structure, business plan, and shareholder identities. The venture underscores the ongoing realignment of financial services in the tech sector, as traditional banks grow more cautious and venture-backed firms look to build their own institutions. Erebor's success will depend on its ability to navigate regulatory hurdles and find favor with regulators.