Peter Thiel Backs Erebor a New Bank Aiming to Support Crypto Startups

Peter Thiel and several other tech billionaires are planning to launch a new bank with a strong focus on digital assets and industries left behind by traditional lenders. The project, called Erebor, draws its name from The Lord of the Rings and aims to fill the gap left by the collapse of Silicon Valley Bank (SVB) in 2023.

Good to know

• Erebor plans to serve crypto startups, AI firms, and defense companies.
• It will also offer traditional banking alongside digital asset services.
• The name Erebor comes from The Lord of the Rings, referencing a hidden mountain stronghold.

According to a Financial Times report, Thiel is joined by other high-profile backers, including the CEO of defense contractor Anduril, in building Erebor. The bank is being set up to support areas they believe are underserved by both traditional banks and newer fintech platforms.

Erebor’s public application to acquire a U.S. banking license outlines its goals clearly:

“The bank will be a national bank… providing traditional banking products, as well as virtual currency-related products and services, for businesses and individuals.”

Sources close to the project said the idea had been in motion since SVB’s collapse. For years, SVB had been a top choice for crypto and tech startups looking for banking services that understood their unique needs. Its closure left a big hole in the market, especially for companies working with digital assets or operating outside the U.S.

Erebor plans to target several sectors, including artificial intelligence, defense, manufacturing, and non-U.S. companies wanting access to American banking infrastructure. The bank also stated that it would focus on clients who are “not well served by traditional or disruptive financial institutions,” particularly those who struggle to access credit.

The initiative is still in the early stages, with license approvals pending, but the vision is clear: Erebor wants to become the go-to option for emerging industries and frontier tech firms often sidelined by mainstream banking.