Erebor Bank Seeks to Fill SVB Gap with Crypto-Friendly Banking Services

Erebor Bank, backed by Peter Thiel's Founders Fund and other tech-world heavyweights, aims to capture market share left vacant after Silicon Valley Bank's collapse in March 2023.

The bank launched operations on February 8, 2026, with an initial capital of $635 million, which quickly grew to $1.1 billion in deposits within seven weeks.

Erebor's investor list reads like a who's who of Silicon Valley power brokers, including Palmer Luckey and Joe Lonsdale.

The bank has positioned itself as crypto-friendly while maintaining a traditional banking framework, focusing on technology startups, venture capital firms, crypto companies, AI ventures, and defense tech.