Summary:
Palmer Luckey launches Erebor, a digital bank for startups and crypto firms, at a $2 billion valuation
Raising $225 million with backing from Founders Fund and 8VC
Erebor plans to offer crypto-collateralized lending and has applied for a US bank charter
Leadership includes ex-Circle and Aer Compliance executives, with Mike Hagedorn as president
Launch aligns with Trump administration's pro-crypto moves and growing Wall Street crypto interest
Anduril CEO Palmer Luckey is venturing into the digital banking space with Erebor, a new startup aimed at serving startups and cryptocurrency companies. With a $2 billion valuation, Erebor is raising at least $225 million, backed by heavyweight investors Founders Fund and 8VC.
The Vision Behind Erebor
Erebor, named after the "Lonely Mountain" in The Lord of the Rings, symbolizes a treasure trove for its clients. The startup is applying for a US bank charter to offer services like crypto-collateralized lending, positioning itself as a modern alternative to traditional banking solutions.
Leadership and Backing
Leading Erebor are Jacob Hirshman (ex-Circle) and Owen Rapaport (Aer Compliance co-founder) as co-CEOs, with Mike Hagedorn (former Valley National Bank CFO) as president. The venture enjoys support from Peter Thiel's Founders Fund and Joe Lonsdale's 8VC, both known for their pro-Trump affiliations and significant contributions to the crypto and tech sectors.
A Strategic Launch
Erebor's emergence coincides with the Trump administration's pro-crypto policies, including the creation of a strategic bitcoin reserve and the appointment of a Crypto Czar. This political backdrop, combined with Wall Street's growing interest in crypto, positions Erebor for potential success in a burgeoning market.
Palmer Luckey, founder of Oculus, Anduril, and now Erebor, at WSJ Tech Live 2023.
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