A group of technological billionaires led by Palmer Luckey, co-founder of the military contractor Andril, is launching a US bank named Erebor to serve startups, including Bitcoin and other encryption activities, according to a Financial Times relationship.
The bank would be supported by technological investors, including the founder of the 8vc risk capital company Joe Lesdale and the co-founder of the defense group Palantir Peter Thiel, according to people who are familiar with the matter.
Erebor will be managed by the CEO of Aer Compliance Owen Rapaport and Co-Ceos Jacob Hirshman, who had previously worked as a consultant at Circle and co-founder. The senior executive vice -president at the Valley Mike Hagedorn National Bank based in New Jersey will act as president.
“The bank will be a national bank … which provides traditional banking products, as well as products and services relating to virtual currency, for businesses and individuals”, according to the report.
The Target market of Erebor would be companies in the economy of the innovation of the United States, such as those of digital currencies, artificial intelligence (AI), defense and production. People who work or invest in these companies and non -US companies will also be needed who seek access to the US banking system.
Bank’s founders aim to cover the gap that Silicon Valley Bank (SVB) has left encryption activities after failing in March 2023. Since then, many Bitcoin and Crypto startups have fought to obtain the same access to the capital from traditional banks.
Erebor declared in the deposit that “would differ” working with customers that “are not well served by traditional or disruptive financial institutions, in particular as regards insufficient access to credit”.
The bank will also be focused on Stablecoin, digital activities have been drowned with real life activities such as the US dollar, according to the report. Erebor aims to become “the most regulated entity that leads and facilitate stablecoin transactions”.
Erebor will be based in Columbus, Ohio, with a further office in New York City. Erebor plans to offer all its services through digital customer service only.