Tech billionaires, including PayPal co-founder Peter Thiel, are joining forces to launch a new financial institution called Erebor. The bank aims to serve venture capital-backed startups in sectors such as artificial intelligence, cryptocurrency, manufacturing, and defense technology. This initiative comes after the collapse of Silicon Valley Bank (SVB), which was heavily involved with crypto firms before its implosion in March 2023.
Erebor has filed for a national bank charter with the Office of the Comptroller of the Currency, a federal banking regulator. The new bank will be led by co-CEOs Owen Rapaport, co-founder of software firm Argus, and Jacob Hirshman, a former adviser to Circle. According to reports, Erebor plans to include stablecoins in its balance sheet, although the specific dollar-pegged tokens it will hold remain unclear.
The formation of Erebor coincides with a positive outlook for digital assets under U.S. President Donald Trump, who has maintained close ties to the industry. Recent legislative developments, such as the passage of the Genius Act, a regulatory framework for stablecoins, are expected to boost the digital assets industry. A market structure bill aimed at easing the operation of crypto companies in the U.S. is also anticipated to become law later this year.
The renewed activity in the crypto market has led to an increase in mergers and acquisitions, as well as a surge in crypto IPOs. The price of Bitcoin has also seen significant gains, reaching two all-time highs following President Trump’s inauguration. As the crypto industry continues to grow, banks like Erebor are positioning themselves to capitalize on this trend by serving the financial needs of crypto and tech startups.
