PayPal co-founder Peter Thiel and a handful of other tech billionaires are reportedly launching a new bank partially dedicated to serving crypto startups.
According to a new report from Financial Times, Thiel and other investors – such as the CEO of military contracting company Anduril – to create a bank called Erebor, which references to popular fantasy series The Lord of the Rings.
FT says the billionaires intend for the bank to serve crypto startups and take the place of Silicon Valley Bank (SVB), a crypto-friendly bank that ended up going bankrupt in 2023. However, the Erebor plans to lend traditionally as well.
As stated by the bank in its public application to acquire the necessary licenses to operate in the US, according to FT,
“The bank will be a national bank… providing traditional banking products, as well as virtual currency-related products and services, for businesses and individuals.”
FT says the bank will focus on key industries, including artificial intelligence (AI), defense, manufacturing, digital assets as well as non-US companies looking to access the US banking system.
People close to the matter say that Thiel and others have been mulling over launching Erebor since the collapse of SVB, which was the go-to bank for crypto firms for many years.
According to the report, Erebor also said in its application filing that it would be looking to “differentiate itself” by serving those who “are not well served by traditional or disruptive financial institutions, in particular with respect to insufficient access to credit.”
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