A new financial institution named Erebor Bank is being established with backing from notable investors including Peter Thiel. Its primary mission is to support crypto startups and early-stage companies, aiming to fill the void created by the collapse of Silicon Valley Bank (SVB).
Erebor Bank specifically targets high-growth, high-risk ventures largely avoided by traditional banks since SVB’s failure. Peter Thiel, alongside investors Palmer Luckey and Joe Lonsdale, lends significant credibility and expertise, with Thiel’s known advocacy for Bitcoin underscoring Erebor’s commitment to the cryptocurrency sector.
The bank is actively pursuing a US bank charter to operate fully and serve the niche once occupied by SVB. The collapse of Silicon Valley Bank significantly disrupted the venture capital and startup ecosystem beyond its core markets, contributing to the downfall of institutions like Silvergate Bank, Signature Bank, and First Republic Bank.
While Silicon Valley Bank ceased independent operations following its collapse, it continues functioning as a division within First Citizens Bank, maintaining its industry focus.