Peter Thiel and Tech Billionaires Plan to Launch a Bank for Crypto and AI Startups

Peter Thiel and Tech Billionaires Plan New Bank for Crypto and AI Startups

Peter Thiel, the co-founder of PayPal, and other tech billionaires are working together to create a new bank called Erebor. Their goal is to support startups in the crypto, AI, defense, and tech industries — especially those struggling to get help from traditional banks. This news comes from a report by the Financial Times.

The new bank is being led by Palmer Luckey, co-founder of defense tech company Anduril. He’s joined by Joe Lonsdale, co-founder of Palantir, and Thiel’s venture firm, Founders Fund.

Erebor has already applied for a national banking license from U.S. regulators. It aims to follow the path of Silicon Valley Bank (SVB), which collapsed in March 2023. SVB used to serve many tech and crypto startups like BlockFi, Circle, and Avalanche. But due to risky investments and a bank run, it became the second-biggest bank failure in U.S. history.

Erebor wants to serve the same kind of clients as SVB — startups backed by venture capital, especially those in AI, crypto, and defense.

The bank will have two co-CEOs:

• Owen Rapaport, co-founder of software firm Argus
• Jacob Hirshman, a former adviser at crypto firm Circle

According to filings, Erebor may also hold stablecoins (crypto tokens linked to the U.S. dollar), although it’s not clear which ones yet.

The name “Erebor” comes from a mountain in the fantasy world of J.R.R. Tolkien, author of The Lord of the Rings.

This move comes at a time when the crypto industry is growing again, especially under U.S. President Donald Trump, who is known to support digital assets.

Under Trump’s leadership:

• The Genius Act, which sets rules for stablecoins, has passed the Senate.
• A new crypto market structure bill is expected to become law, making it easier for crypto businesses to operate in the U.S.

Thanks to this progress, the crypto market is booming again. Bitcoin hit two all-time highs after Trump returned to office. There’s also been a rise in crypto-related mergers and IPOs (initial public offerings).