Erebor Bank will open in 2025. It hopes to position itself as a cutting-edge financial institution that serves the next generation of startups emerging particularly from the AI and Web3 space. Founded in Columbus, Ohio, with a satellite office in New York, Erebor aims to blend traditional banking services with blockchain-powered features. These include loans, payroll, and stablecoin payments.

Its joint CEO, Jacob Hirshman, previously of one of the largest stablecoin issuers, is at the wheel. Former Palantir exec and Joe Lonsdale, cofounder of Palantir, is active with the company. Erebor’s model simplifies doing business for tech firms with remote workforces and global service providers.

"We're building a modern institution for the next generation of startups." - Jacob Hirshman

Erebor’s stablecoin services enable businesses to deposit U.S. dollars, convert those dollars into stablecoins, and make payments anywhere in the world within seconds. This functionality addresses the growing need for speed and clarity in payment processing. Specifically, it offers a digital counterpart to the old, clunky SWIFT system for international transfers.

Buoyed by the success of Tolkien’s mountain fortress, the bank has applied for a national charter. This move further demonstrates its commitment to operating under full U.S. regulatory supervision. Peter Thiel’s Founders Fund, which was an early investor in SpaceX, Stripe and many others, is one of Erebor’s other early backers. The company has lofty goals—chief among them, to be the Silicon Valley of Web3 startup incubators.

"Speed and security are core to what startups need." - Jacob Hirshman

Erebor’s success depends heavily on upcoming regulatory changes in Washington. Even winning a national charter may be difficult, considering the increasing enforcement of U.S. compliance requirements. As some critics/foes have pointed out, that is an ambitious regulatory path that Erebor is taking.

"We're not trying to replace the dollar. We're trying to make it more useful." - Jacob Hirshman

Erebor tells us a little more about a big trend in 2025. It demonstrates the powerful ways fintech, crypto and Web3 infrastructure are converging to produce more compliant and accessible services such as these.