A group of prominent investors is launching Erebor, a new U.S.-based bank aimed at supporting the innovation economy in the aftermath of Silicon Valley Bank’s 2023 collapse. Backed by Peter Thiel’s Founders Fund and tech billionaires Palmer Luckey and Joe Lonsdale, the bank is named after the treasure-filled mountain in J.R.R. Tolkien’s The Lord of the Rings. Erebor intends to become a key banking partner for risk-oriented technology start-ups, cryptocurrency ventures, defence innovators, and manufacturing firms that often struggle to secure services from traditional banks. According to its filing for a U.S. national bank charter, Erebor will provide conventional banking products alongside virtual currency offerings and aims to be “the most regulated entity conducting and facilitating stablecoin transactions.”
The institution will be headquartered in Columbus, Ohio, with an additional office in New York, and will operate as a digital-first bank through its mobile app and website. Co-CEOs Jacob Hirshman, formerly of Circle, and Owen Rapaport of Aer Compliance will lead operations, while banking veteran Mike Hagedorn will serve as President. The bank will also extend services to non-U.S. companies seeking access to the U.S. financial system. By embedding itself within the venture capital ecosystem, Erebor seeks to redefine start-up banking, offering entrepreneurs a specialised financial partner for artificial intelligence, digital assets, and defense technology ventures.
