Thiel-Backed Erebor Aims to Replace Silicon Valley Bank for Crypto and AI Startups

- Tech investors, including Peter Thiel, to launch Erebor, a digital-only bank targeting underserved industries. - Bank to focus on crypto, artificial intelligence (AI), and defense sectors. On July 2, 2025, The Financial Times reported that Peter Thiel is launching Erebor, a digital-only bank. He joins prominent investors like Joe Lonsdale, co-founder of Palantir, and Palmer Luckey, founder of the defense firm Anduril, to address the financing needs of startups in crypto, AI, and defense. In addition, the bank seeks to fill the void left by the 2023 collapse of Silicon Valley Bank (SVB) and aims to provide financial services to businesses and individuals that mainstream institutions traditionally overlook. According to The Financial Times on July 2, Erebor has applied for a U.S. national bank charter with the Office of the Comptroller of the Currency. The bank plans to combine traditional banking products with virtual currency services, making stablecoins a core focus. By positioning itself as a leader in regulated stablecoin transactions, Erebor can therefore offer more accessible credit options for startups and high-risk ventures. The bank’s headquarters will be in Columbus, Ohio, with a secondary office in New York City. Its executive team includes co-CEOs Jacob Hirshman, an advisor to the stablecoin company Circle, and Owen Rapaport, while Mike Hagedorn will serve as president. Although key figures like Lonsdale and Luckey helped found Erebor, neither will have a role in its daily operations. Erebor’s name pays homage to J.R.R. Tolkien’s fictional world, which aligns with other Thiel-backed ventures such as Anduril and Palantir. In addition to addressing domestic gaps left by SVB, Erebor plans to extend U.S. banking services to non-U.S. businesses and support innovators and investors in the crypto, AI, and defense spaces. The emergence of Erebor represents a significant shift in the banking landscape, showcasing an increasing demand for crypto-friendly services and credit solutions tailored to emerging industries that traditional banks have often neglected. According to CoinMarketCap on July 2, 2025, Bitcoin (BTC) is trading at $109,426.44 as of 17:09 UTC, with a 3.17% change in 24-hour trading volume.