Thiel-Backed Erebor Bank Targets Crypto and Startup Banking Gap Post-SVB Collapse

A new financial institution backed by prominent tech figures including Peter Thiel and Palmer Luckey aims to serve the innovation economy left stranded by Silicon Valley Bank's demise. Erebor Bank—named after Tolkien's Lonely Mountain—has filed for a national charter with a focus on cryptocurrency firms and venture-backed startups.

The investor roster reads like a who's-who of tech conservatism: Anduril co-founder Luckey, Palantir's Joe Lonsdale, and Thiel's Founders Fund anchor the venture. While these high-profile backers won't handle daily operations, the bank tapped crypto-experienced leadership including Circle alumnus Jacob Hirshman and Aer Compliance CEO Owen Rapaport as co-CEOs.

Columbus, Ohio will house the headquarters, with a New York satellite office. The bank's charter application emphasizes traditional banking services tailored for the underbanked innovation sector—a clear play for SVB's orphaned clientele. This MOVE signals growing institutional recognition of crypto-native businesses as legitimate banking customers.