In March 2023, the collapse of Silicon Valley Bank left a massive void in the financial landscape. Startups and the crypto sector were hit the hardest by this effect. Now, future-ready leaders in the national tech community are working to take up that baton. Erebor, a recently chartered but not yet open national bank, seeks to offer businesses and consumers a full array of services involving traditional and virtual currencies.

Erebor seeks to empower clients who have difficulty accessing services through legacy or disruptive financial institutions. They pay particular attention to those struggling to access credit. The bank would “differentiate itself” by expanding its customer base to these types of customers.

Even the name “Erebor” is taken directly from the writing of J.R.R. This is parallel to other tech companies like Palantir and Anduril. Palantir is a controversial defense company co-founded by Peter Thiel, who leads the venture capital fund Founders Fund.

Founders Fund has investments in stablecoin companies. Joe Lonsdale, co-founder of the military contractor Palantir, and founder of the ultra-libertarian venture capital firm 8VC. He is hardly a lone figure in the tech and investment world.

Erebor aims to be "the most regulated entity conducting and facilitating stablecoin transactions." This increased focus on regulation follows a moment of intensified scrutiny of the issuer of the largest stablecoin, tether, with allegations about illicit activities.

"After all, most illicit activity on the blockchain now includes stablecoin use."

The bank aims "providing traditional banking products, as well as virtual currency-related products and services, for businesses and individuals."- Erebor

More information continues to come to light. Erebor’s commitment to the alternative banking model and virtual currency services represents the beginning of a potentially huge trend in the financial industry.