By Ateev Bhandari
(Reuters) The billionaire of Joe Lonsdale technology said on Wednesday that he was investing in a new American bank focused on the cryptocurrency by the launch by the co-founder of Anduril Palmer Luckey who aims to fill the vacuum left by the collapse of Silicon Valley Bank.
Before a liquidity crisis in March 2023, SVB had long been a main main banking channel for technological companies at an early stage and venture capital – entities deemed too risky by traditional banks.
Many startups have struggled to access capital and comply with immediate obligations such as paying after the bank.
Lonsdale, who co -founded Palant, told a statement sent by email to Reuters that he was a “proud investor” in the project.
The proposed lender, called Erebor, asked for a charter of the National Bank and plans to serve technological companies in fields such as artificial intelligence, crypto, defense and manufacturing, as well as individuals who work or invest there, according to his request for a charter.
Like Andundil and Palant, Erebor takes his name from the series “The Lord of the Rings” by Jrr Tolkien. In books, Erebor is the “solitary mountain”, a fortress whose treasures are recovered in the dragon Smaug.
The application for Erebor, whose headquarters are in Columbus, Ohio, describes a digital model, with a secondary office in New York.
According to the request for a charter, the bank will be led by Owen Rapaport and Jacob Hirshman, a former adviser from Stablecoin Company Circle.
Erebor also plans to hold stablecoins on its balance sheet. A cryptographic asset class fixed to currencies such as the US dollar, the stablescoins are designed to maintain a stable value supported by the reserves.
Fintech and established financial institutions are increasingly adopting stablescoins to accelerate cross -border payments faster, simplify regulations and extend access to digital financial services.
The bank in a regulatory file said it aims to be “the most regulated entity making and facilitating stable transactions”.
The Financial Times first pointed out the news and said that the group of technological billionaires supporting Erebor also includes the Founders of Peter Thiel.
Luckey and Lonsdale should not be involved in the daily management of the bank, according to the financial report Times.
Luckey, Thiel and an Erebor spokesperson did not immediately respond to Reuters’ comments.
(Report by Ateev Bhandari in Bengaluru; edition by Pooja Desai and Maju Samuel)
