Coin WorldThursday, Jul 3, 2025 7:39 am ET

1min read

Billionaire Peter Thiel has backed a new bank called Erebor, which aims to serve emerging sectors such as cryptocurrency, artificial intelligence, defense tech, and AI. The bank intends to offer both traditional financial services and specialized products tailored to these industries. Thiel is joined by other high-profile figures, including the CEO of defense contractor Anduril, in supporting this venture.

Erebor has filed for a national banking license and plans to serve both businesses and individuals, with a particular focus on those involved in virtual currencies. The bank also aims to cater to global firms seeking access to the U.S. financial system. Sources familiar with the initiative reveal that Erebor has been in development since the collapse of Silicon Valley Bank in 2023, which had long been a financial hub for crypto startups and venture-backed companies.

Erebor’s strategy emphasizes reaching customers who are underserved by both legacy and disruptive banks. The bank aims to improve credit access for industries and geographies that are currently overlooked by financial providers. This includes venture capital-backed startups that have struggled to find adequate financial services from traditional institutions.

The bank will be led by two co-CEOs: Owen Rapaport, co-founder of software firm Argus, and Jacob Hirshman, a former Circle adviser. The formation of Erebor comes at a time when digital assets are expected to gain significant traction under the current U.S. administration, with regulatory frameworks and market structure bills being passed to support the industry. The bank's name is inspired by a mountain in J.R.R. Tolkien's fictional world, adding a unique and recognizable element to its branding.