Silicon Valley's Next Play: Big Tech Billionaires Building a Crypto-Native Bank

Palmer Luckey (Anduril co-founder) and a crew of heavyweight VCs including Joe Lonsdale (8VC) and Peter Thiel are quietly building Erebor Bank – a federally-chartered U.S. bank designed specifically for crypto, AI, and defense tech startups.

Why Now?

SVB’s collapse in March 2023 left a gaping hole. Bitcoin and crypto companies suddenly couldn’t get basic banking services. Erebor is moving in to fill that vacuum – targeting founders and businesses that traditional banks won’t touch.

The Playbook

Who’s Running It?

• Owen Rapaport (ex-Aer Compliance CEO) leading operations
• Jacob Hirshman (former Circle advisor) as co-CEO
• Mike Hagedorn from Valley National Bank as president

What They’re Offering:

• Traditional banking products wrapped in crypto-friendly infrastructure
• Heavy focus on stablecoins (digital assets pegged to USD/real assets)
• Credit access for companies that can’t get it elsewhere
• Digital-only operations (no branches, full online service)

Where? Columbus, Ohio HQ + NYC office

The Real Story

This isn’t just about banking. It’s about capture – the crypto industry finally gets institutional-grade financial infrastructure. Erebor’s positioning as “the most regulated entity conducting stablecoin transactions” signals something bigger: tech’s heavyweight players aren’t waiting for legacy finance anymore. They’re building it themselves.

The target market says it all: crypto startups, defense contractors, AI companies, manufacturing. This is Silicon Valley positioning itself as the financial backbone of tomorrow’s economy.