Peter Thiel & Silicon Valley Titans Launch Erebor—A Crypto-Native Bank for Startups Post-SVB Meltdown

Tech oligarchs circle the wagons—and their capital—with a blockchain-powered challenger bank.

When the dust settled after SVB's collapse, Silicon Valley's elite didn't just lick their wounds. They built a vault.

Erebor isn't your grandfather's financial institution. The Thiel-backed venture combines decentralized finance rails with traditional banking services—a hedge against centralized failures wrapped in regulatory compliance.

The pitch? 'Never again' to frozen accounts and FDIC limbo. The reality? Another play to keep venture capital flowing on their terms—with extra steps.

Because nothing solves systemic risk like a shiny new system... until it doesn't.

Erebor Emerges to Fill SVB Void With Focus on Cutting-Edge Tech Businesses

Erebor has applied for a national bank charter and plans to serve tech businesses focused on artificial intelligence, crypto, defence and manufacturing, as well as the individuals who work at or invest in them.

Tech billionaires back new lender Erebor as Silicon Valley Bank rival https://t.co/xotSEuUfWb

The firm’s formation traces back to the abrupt fall of SVB, which collapsed in March 2023 under the weight of poor asset management and a sudden bank run.

Once the go-to institution for early-stage tech firms and venture capitalists, SVB’s demise disrupted financial access for the innovation economy.

While its assets were acquired by First Citizens and its bankers moved to new institutions like HSBC, many start-ups still report difficulties securing credit under the more risk-averse models of traditional banks.

“The bank will be a national bank providing traditional banking products, as well as VIRTUAL currency-related products and services, for businesses and individuals,” Erebor said in its public filing.

Erebor to Operate as Digital-Only Bank, With Eyes on Global Clients and Stablecoin Dominance

The application also outlines plans to support non-US firms seeking access to the US banking system. In addition, Erebor aims to stand out by offering credit to businesses often overlooked by both traditional and disruptive financial institutions.

Peter Thiel and Founders Fund have long been iconic forces in Silicon Valley. Over the years, the fund has built a portfolio of some of the most transformative tech companies. It includes 43 unicorns, 28 IPOs and 116 acquisitions. Notable names include SpaceX, Palantir, Facebook and Airbnb. As a result, their backing gives Erebor strong credibility among tech investors and founders.

Although the bank is backed by high-profile figures, Luckey and Lonsdale are not expected to take on operational roles. Instead, Erebor will be led by co-CEOs Jacob Hirshman and Owen Rapaport. Hirshman previously worked at crypto firm Circle. Rapaport is the CEO of Aer Compliance. Additionally, Mike Hagedorn, a veteran of Valley National Bank, will serve as president, according to the FT.

Erebor will be headquartered in Columbus, Ohio, with a secondary office in New York, but will operate entirely digitally. All customer interactions and services will be delivered through its app and website.

Stablecoins are expected to be a Core focus. Erebor described its goal as becoming “the most regulated entity conducting and facilitating stablecoin transactions.”

However, key parts of the application, including financials and ownership details, were filed confidentially and remain undisclosed.