A group of technological billionaires led by Palmer Luckey, co-founder of the military entrepreneur Andendil, launches an American bank named Erebor to serve startups, in particular Bitcoin and other cryptographic companies, according to a Financial Times report.
The bank would be supported by technological investors, in particular the founder of the venture capital company 8VC Joe Lonsdale, and the co-founder of the Defense Group Palant Peter Thiel’s, according to people familiar with the problem.
Erebor will be managed by the CEO of AER Compliance Owen Rapaport and CO-PDG Jacob Hirshman, who previously worked as an advisor at Circle, and the co-founder. The main executive vice-president of the National Bank of the New Jersey Valley, Mike Hagedorn, will be president.
“The bank will be a national bank … offering traditional banking products, as well as products and services related to virtual currency, for businesses and individuals,” according to the report.
The Erebor target market would be companies in the American innovation economy, such as those of digital currencies, artificial intelligence (AI), defense and manufacturing. It will also serve people who work for or invest in non -American companies and businesses who seek access to the American banking system.
The founders of the bank aim to fill the gap that the Silicon Valley Bank (SVB) left cryptographic companies after having failed in March 2023. Since then, many Bitcoin and Crypto startups have struggled to obtain the same access to the capital of traditional banks.
Erebor declared in the file he “differentiates” by working with customers who are not well served by traditional or disruptive financial institutions, in particular with regard to insufficient access to credit “.
The bank will also focus on stablecoins, digital assets set on real assets like the US dollar, according to the report. Erebor aims to become “the most regulated entity leading and facilitating stablecoin transactions”.
Erebor will have its registered office in Columbus, Ohio, with an additional office in New York. Erebor plans to offer all of its services via digital customer service only.
