Tech Billionaires Build a Digital Bank for Crypto and Startups
Palmer Luckey, Peter Thiel, and Joe Lonsdale are creating Erebor, a new digital bank specifically for crypto companies, startups, and defense contractors. They’ve filed for a national bank charter and want to raise $250 million at a $2.25 billion valuation. The main reason they chose to do it now is that Silicon Valley Bank collapsed in March 2023, leaving thousands of startups without a banking partner. When $42 billion fled SVB in a single day, nearly half of all venture-backed tech companies lost their primary bank. The founders saw a great chance to fill this massive gap. Erebor will operate entirely online from Columbus, Ohio, with a second office in New York. The bank targets businesses that regular banks won’t touch – AI companies, crypto firms, defense contractors, and manufacturers. Jacob Hirshman (former Circle advisor) and Owen Rapaport (from Aer Compliance) will run the bank as co-CEOs, while Mike Hagedorn from Valley National Bank serves as president. Erebor stands out by holding stablecoins directly and offering loans backed by crypto assets. Businesses can deposit U.S. dollars, convert them into stablecoins, and send payments worldwide almost instantly, eliminating…
Read this story on easyreadernews.com