Co-founder of PayPal and other tech billionaires plan to establish Erebor Bank

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According to the Financial Times, PayPal co-founder Peter Thiel and other tech billionaires plan to establish a bank named Erebor, focusing on serving startups in the fields of cryptocurrency, artificial intelligence, manufacturing, and defense technology. Erebor has applied for a national banking charter from the Office of the Comptroller of the Currency.

This 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 missteps.

Erebor was founded by Palmer Luckey, co-founder of defense technology company Anduril, and is supported by Palantir co-founder Joe Lonsdale and the Founder Fund established by Thiel. The two co-executives are Owen Rapaport, co-founder of software company Argus, and Jacob Hirshman, former advisor of Circle. Erebor plans to bring stablecoin onto its balance sheet, but has not yet specified a particular currency.

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