A group of high-profile tech billionaires is preparing to launch a new bank called Erebor, aiming to fill the void left by the collapse of Silicon Valley Bank in 2023. The venture is reportedly backed by influential figures including Palmer Luckey, founder of defence firm Anduril, and Joe Lonsdale, co-founder of Palantir and managing partner at 8VC. Founders Fund, the venture capital firm co-founded by Peter Thiel, is also said to be an investor.
According to sources cited by the Financial Times, Erebor will target startups and cryptocurrency firms often overlooked by traditional financial institutions. These sectors had been core clients of Silicon Valley Bank before its failure, and Erebor’s founders appear determined to re-establish a similar financial foothold in a space now underserved.
In its application for a national banking charter, Erebor stated its intention to offer both traditional banking services and virtual currency-related products. The filing emphasised the bank’s aim to serve clients with “insufficient access to credit” who have struggled to find support in either conventional or alternative finance markets.
The bank’s name follows a familiar pattern among ventures linked to its founders, drawing inspiration from J.R.R. Tolkien’s fantasy world. In The Hobbit, Erebor is a mountain filled with treasure — a symbolic nod to the bank’s ambitions in digital finance.
A major focus for Erebor will be stablecoins, with the bank aspiring to become “the most regulated entity conducting and facilitating stablecoin transactions.” The move comes as traditional financial players increasingly engage with stablecoins, spurred by new U.S. regulations that have provided clearer compliance frameworks for tokenised dollar systems.
Firms such as J.P. Morgan, Visa and Stripe are already experimenting with blockchain-based payment solutions, encouraged by regulatory clarity. However, experts caution that full-scale implementation remains complex, involving multiple agencies including the Treasury Department, Federal Reserve and Financial Crimes Enforcement Network to oversee compliance and licensing protocols.
Stablecoins have become an integral part of blockchain finance, but they also feature in a growing share of illicit online activity. Regulators are now under pressure to balance innovation with enforcement, as established banks and new entrants like Erebor compete to shape the future of digital finance.
If approved, Erebor could become a pivotal institution in the evolving landscape of tech-driven banking, especially as mainstream finance and crypto continue to converge.
