Tech billionaires led by Palmer Luckey to launch new bank to rival SVB, FT reports
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
3 hours ago
- CNA
Singapore Tonight - Wed 2 Jul 2025
47:30 Min Singapore Tonight From business to politics, health to technology, we bring you up-to-date with the latest news on Singapore and analyze how these events may affect you tomorrow.
CNA
3 hours ago
- CNA
Travel, tourism-related US businesses feel pinch from lower visitor arrivals
From the bright lights of New York City to the coastal beauty of California, the United States has long been a tourism destination for travelers from around the world. The industry added more than US$2.6 trillion to the US economy last year alone, supporting more than 20 million jobs. But this year, international arrivals are slumping as travellers weigh up rising costs and how they feel about America in general. As Toni Waterman reports, businesses are feeling the pinch.
CNA
5 hours ago
- CNA
Oil falls on signs of weak US demand ahead of key jobs report
Oil prices eased on Thursday, reversing gains from the previous session, on concerns over weak U.S. demand after government data showed a surprise build in inventories in the world's biggest crude consumer. Brent crude futures fell 24 cents, or 0.35 per cent, to $68.87 a barrel by 0044 GMT after gaining 3 per cent on Wednesday. U.S. West Texas Intermediate crude fell 24 cents, or 0.36 per cent, to $67.21 a barrel after climbing 3.1 per cent previously. The U.S. Energy Information Administration said on Wednesday domestic crude inventories rose by 3.8 million barrels to 419 million barrels last week. Analysts in a Reuters poll had expected a drawdown of 1.8 million barrels. Gasoline demand dropped to 8.6 million barrels per day, prompting concerns about consumption in the peak U.S. summer driving season. Both benchmarks gained on Wednesday after Iran enacted a law suspending cooperation with the U.N. nuclear watchdog, raising concerns the lingering dispute over the Middle East producer's nuclear program may once again devolve into armed conflict. Additionally, the U.S. and Vietnam reached a trade deal that sets 20 per cent tariffs on many of the Southeast Asian country's exports, giving investors a sense of greater economic stability on international trade which could flow into higher demand for oil. The market will be watching the release of the key U.S. monthly employment report on Thursday to shape expectations around the depth and timing of interest rate cuts by the Federal Reserve in the second half of this year, analysts said. Lower interest rates could spur economic activity, which would in turn boost oil demand. A private payrolls report on Wednesday showed a contraction for the first time in two year though analysts cautioned there is no correlation between it and the government data.
