A fresh banking venture is taking shape in Silicon Valley. This time, it’s coming from some of the most recognizable names in tech. Palmer Luckey, Peter Thiel, and Joe Lonsdale are backing Erebor Bank, a new institution aimed at serving crypto firms, AI startups, defense tech, and advanced manufacturing, the types of companies that were left in limbo after the collapse of Silicon Valley Bank in 2023.
Filling SVB’s Gap
Before its downfall, SVB played a major role in financing early-stage tech. Its absence created a vacuum that traditional banks were not exactly eager to fill. Erebor Bank wants to step into that space.
ICYMI: A new US bank backed by @PalmerLuckey and @JTLonsdale is aiming to fill the crypto sized hole left by SVB.
Called Erebor the bank has filed for a national charter and plans to serve crypto AI and defense startups with a focus on stablecoins & digital assets.
— levinocrypto (@levinocryp45219) July 3, 2025
It’s a digital-first operation with its main office in Columbus, Ohio, and a presence in New York. The goal is to build a modern institution that understands the speed and complexity of the startup world, especially in crypto.
A Stablecoin-Backed Blueprint
One thing that sets Erebor apart is its intention to actively support stablecoins. The bank has already applied for a national banking charter and plans to hold stablecoins on its balance sheet. That move could give it an edge when it comes to serving companies working with tokenized assets or global payments. Co-CEOs Owen Rapaport and Jacob Hirshman, both with experience in crypto infrastructure, are driving this plan forward.
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Founders and Mission
Palmer Luckey, known for Oculus and defense firm Anduril, is financially backing the project but will stay out of day-to-day operations. Peter Thiel and Joe Lonsdale bring deep ties to venture capital through Founders Fund and 8VC. The leadership team, including Rapaport, who previously worked at Circle, sees Erebor as a lifeline for tech sectors that have been underserved since SVB went under.
The aim is to create a bank that doesn’t flinch at innovation. Where others see risk, Erebor sees potential. It’s pitching itself as the first real banking option designed from the ground up to support the tools and trends defining the next decade.
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Why Now May Be the Right Time
The timing is no accident. The startup ecosystem has not fully recovered from SVB’s implosion. Founders still struggle to find banking partners that truly get their business models. On top of that, stablecoin regulation is finally starting to take shape, and several crypto firms like Circle and Anchorage are moving toward regulated banking models. Erebor wants to get ahead of that curve.
The bank says it plans to become one of the most tightly regulated institutions working with stablecoins. If that happens, it could offer a blend of security and speed that few others can match.
What Lies Ahead
Even with strong backing, Erebor has a long regulatory road ahead. Getting a national charter means meeting standards set by the OCC, Federal Reserve, and other agencies. And since crypto is still a sensitive topic for many regulators, the bank’s digital asset strategy is likely to face heavy scrutiny.
But Erebor is entering the space at a moment when the rules are clearer and the demand is higher. Circle’s expansion and Anchorage’s foothold have already proven there’s a real appetite for crypto-native banking options that play by the rules.
Looking Forward
Erebor is not trying to recreate the past. It’s stepping into the future with a clear focus on stablecoins, secure custody, and smarter lending. Whether it becomes the go-to bank for tech startups or just helps push the conversation forward, it’s already part of the next chapter in the crypto and fintech story. The gap left by SVB is still there. Erebor thinks it has the blueprint to finally close it.
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Key Takeaways
- Erebor Bank is being launched by tech figures like Palmer Luckey, Peter Thiel, and Joe Lonsdale to serve crypto, AI, and defense startups left behind after SVB’s collapse.
- The bank plans to support stablecoins directly on its balance sheet and has applied for a national banking charter to operate as a federally regulated institution.
- Erebor Bank’s leadership includes former Circle staff and crypto veterans aiming to create a regulated, digital-first bank tailored to startup needs.
- The project is designed to fill the startup banking gap with tools for fast-moving sectors like tokenized assets, global payments, and advanced manufacturing.
- If successful, Erebor Bank could become a major player in crypto banking by combining innovation with full regulatory compliance.
The post Tech Titans Launch Erebor Bank to Fill SVB’s Void for Crypto and AI Startups appeared first on 99Bitcoins.
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