A bunch of tech billionaires led by Palmer Luckey, co-founder of army contractor Anduril, are launching a U.S. financial institution named Erebor to serve startups, together with Bitcoin and different crypto companies, in line with a Monetary Occasions report.
The financial institution can be backed by tech buyers together with the Founding father of Enterprise Capital Agency 8VC Joe Lonsdale, and the co-founder of Defence Group Palantir Peter Thiel’s, in line with individuals accustomed to the matter.
Erebor shall be run by the CEO of Aer Compliance Owen Rapaport and co-CEOs Jacob Hirshman, who beforehand labored as an adviser at Circle, and the co-founder. The senior government vice-president at New Jersey-based Valley Nationwide Financial institution Mike Hagedorn will function president.
“The financial institution shall be a nationwide financial institution… offering conventional banking merchandise, in addition to digital currency-related services, for companies and people,” in line with the report.
Erebor’s goal market can be firms within the U.S. innovation economic system, corresponding to these in digital currencies, synthetic intelligence (AI), defence and manufacturing. It’ll additionally serve people who work for or put money into these firms, and non-U.S. companies looking for entry to the U.S. banking system.
The financial institution founders intention to cowl the hole that Silicon Valley Financial institution (SVB) left serving crypto companies after it failed in March, 2023. Since then, many Bitcoin and crypto startups have struggled to get the identical entry to capital from conventional banks.
Erebor mentioned within the submitting it will “differentiate itself” by working with clients that “will not be nicely served by conventional or disruptive monetary establishments, specifically with respect to inadequate entry to credit score.”
The financial institution can even be targeted on stablecoins, digital belongings pegged to real-life belongings just like the U.S. greenback, in line with the report. Erebor goals to develop into “probably the most regulated entity conducting and facilitating stablecoin transactions.”
Erebor shall be headquartered in Columbus, Ohio, with an extra workplace in New York Metropolis. Erebor plans to supply all of its providers by digital-only customer support.