Key Takeaways:
- Peter Thiel and other top investors are backing Erebor, a new bank focused on crypto and startups, following SVB’s collapse.
- Erebor has applied for a U.S. banking charter to serve high-risk firms often underserved by traditional banks.
- The initiative involves figures like Palmer Luckey and Joe Lonsdale, aiming to fill the financial gap left by SVB.
A group of prominent investors, including billionaire Peter Thiel, is backing a new crypto-friendly bank called Erebor, aiming to fill the void left by Silicon Valley Bank’s (SVB) collapse in March 2023.
The planned institution is designed to serve startups and cryptocurrency companies that often face challenges accessing traditional banking due to regulatory hurdles.
Tech billionaires back new lender Erebor as Silicon Valley Bank rival https://t.co/xotSEuUfWb
— Financial Times (@FT) July 1, 2025
Erebor has applied for a U.S. banking charter, signaling its intent to operate as a fully regulated financial entity.
Thiel’s Founders Fund is among its early supporters, alongside Palmer Luckey, co-founder of defense firm Anduril, and Joe Lonsdale of 8VC.
Thiel, a vocal supporter of Bitcoin and blockchain technology, has been involved in various crypto ventures, including the exchange Bullish.
Erebor also plans to support high-risk firms beyond the crypto space, particularly those in early growth stages.
SVB’s collapse marked the first major U.S. bank failure in 2023, triggering a broader financial crisis that affected other institutions like Silvergate, Signature, and First Republic.
SVB was later acquired by First Citizens Bank, where it now operates as a specialized division.
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