PANews reported on July 3 that according to the Financial Times, PayPal co-founder Peter Thiel and other technology billionaires plan to set up a bank called Erebor, focusing on serving startups in the fields of cryptocurrency, artificial intelligence, manufacturing and defense technology. Erebor has applied for a national bank license from the U.S. Office of the Comptroller of the Currency.

The bank aims to fill the market gap left by the collapse of Silicon Valley Bank (SVB), which served cryptocurrency companies and other venture-backed startups including BlockFi, Circle and Avalanche, but went bankrupt in 2023 due to financial investment mistakes.

Erebor was founded by Palmer Luckey, co-founder of defense technology company Anduril, and supported by Palantir co-founder Joe Lonsdale and Founder Fund founded by Thiel. The two co-CEOs are Owen Rapaport, co-founder of software company Argus, and Jacob Hirshman, former Circle consultant. Erebor plans to include stablecoins in its balance sheet, but has not yet specified the specific currency.