Tech Billionaires Back Crypto-Friendly Bank Erebor to Fill SVB Void

Prominent tech investors including Palmer Luckey, Joe Lonsdale, and Peter Thiel's Founders Fund are backing Erebor, a new digital bank aiming to serve crypto and tech startups following Silicon Valley Bank's collapse. The venture has filed for a national banking charter with plans to operate as a fully digital institution.

The bank takes its name from J.R.R. Tolkien's mythical mountain, positioning itself as a fortress for high-risk sectors traditional lenders avoid. Headquartered in Ohio with a New York presence, Erebor will specialize in serving crypto firms, AI startups, and advanced manufacturing companies through entirely online operations.

SVB's 2023 failure created acute financing challenges for tech startups accustomed to its specialized services. Erebor's backers aim to rebuild that infrastructure, betting on continued growth in cryptocurrency and frontier technologies despite sector volatility.