Tags: cryptocurrency | bank | technology | billionaires | svb | palmer | luckey

Tech Billionaires to Launch New Crypto Bank to Rival SVB

Tech Billionaires to Launch New Crypto Bank to Rival SVB
Founder of Anduril and Oculus VR, Palmer Luckey speaks at the Vanity Fair New Establishment Summit in Beverly Hills, California. (Matt Winkelmeyer/Getty Images/2018 file)

Wednesday, 02 July 2025 08:41 AM EDT

A group of tech billionaires led by Anduril co-founder Palmer Luckey are launching a new crypto-focused U.S. bank to fill the void left by Silicon Valley Bank's collapse, The Financial Times reported Wednesday, citing people familiar with the matter.

The group also includes Peter Thiel's Founders Fund and Palantir co-founder Joe Lonsdale, a major donor to U.S. President Donald Trump's 2024 campaign, the report said.

Before a March 2023 liquidity crisis, SVB had long been a major primary banking channel for early-stage technology firms and venture capitalists - entities deemed too risky by traditional banks. Many startups struggled to access capital and meet immediate obligations such as payrolls after the bank collapsed.

The proposed lender, called Erebor, has applied for a national bank charter and plans to serve technology businesses in areas such as artificial intelligence, crypto, defense and manufacturing, as well as individuals who work at or invest in them, according to its charter application.

The application for Erebor, to be headquartered in Columbus, Ohio, outlines a digital-only model, with a secondary office in New York.

According to the charter application, the bank will be led by co-CEOs Owen Rapaport and Jacob Hirshman, a former adviser to stablecoin company Circle.

Erebor is also planning to hold stablecoins on its balance sheet. A crypto asset class pegged to currencies such as the U.S. dollar, stablecoins are designed to hold a steady value backed by reserves.

Fintechs and established financial institutions are increasingly adopting stablecoins to accelerate cross-border payments faster, simplify settlements and expand access to digital financial services.

The bank aims to become "the most regulated entity conducting and facilitating stablecoin transactions," according to its charter application.

Luckey and Lonsdale are not expected to be involved in the day-to-day management of the bank, the Financial Times report said.

Luckey, Thiel, Lonsdale and a spokesperson for Erebor did not immediately respond to Reuters request for comment.

© 2025 Thomson/Reuters. All rights reserved.


StreetTalk
A group of tech billionaires led by Anduril co-founder Palmer Luckey are launching a new crypto-focused U.S. bank to fill the void left by Silicon Valley Bank's collapse, The Financial Times reported Wednesday.
cryptocurrency, bank, technology, billionaires, svb, palmer, luckey
315
2025-41-02
Wednesday, 02 July 2025 08:41 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved