Catenaa, Friday, July 11, 2025-Erebor, a new US national bank backed by Peter Thiel and other Silicon Valley heavyweights, aims to fill the financing void left by Silicon Valley Bank’s 2023 collapse.
However, some analysts say that crypto and banking would make a dangerous mix and hence urge authorities to review the decisions.
The digital-only bank, founded by Palmer Luckey and Joe Lonsdale, targets start-ups in AI, crypto, defense, and manufacturing sectors.
Erebor plans to offer traditional banking services alongside virtual currency-related products, addressing a critical need for credit access among early-stage tech firms and investors.
With SVB’s demise, many start-ups have struggled under stricter lending models at traditional banks. Erebor intends to operate through a fully digital platform, serving both U.S. and international clients.
Thiel’s Founders Fund, known for backing top tech disruptors like SpaceX and Palantir, provides significant credibility to the venture.
Although Luckey and Lonsdale are founders, day-to-day leadership falls to co-CEOs Jacob Hirshman, formerly with crypto firm Circle, and Owen Rapaport, CEO of Aer Compliance. Banking veteran Mike Hagedorn will serve as president.
Headquartered in Columbus, Ohio, with a secondary office in New York, Erebor aims to become a leading regulated facilitator of stablecoin transactions. The bank’s confidential filings leave some financial and ownership details undisclosed.
Erebor’s emergence signals a renewed push to support innovation economies through tailored banking solutions, combining digital infrastructure with regulatory compliance to meet start-ups’ evolving needs.
