- Palmer Luckey is launching a new digital bank with backing from Peter Thiel. Erebor takes its name from The Lord of the Rings. It’s the latest in several businesses associated with the two that pay homage to the fantasy books.
Peter Thiel has signed on to back Palmer Luckey’s latest startup, a digital bank for startups and cryptocurrency companies named Erebor.
Thiel’s Founders Fund has reportedly invested in the bank in an ongoing round. 8VC, the venture fund from Palatir cofounder Joe Lonsdale, is also reportedly backing the bank.
Like Palantir, Erebor takes its name from The Lord of the Rings series, specifically the prequel. Also known as the Lonely Mountain, it’s a prime setting for The Hobbit. While it’s described in that book as the greatest kingdom in Middle-Earth, it also has a dark history.
We’ll spare you the full history of Erebor, but if you’ve read the book or seen the movie, you might recall that Smaug, the treasure-loving dragon, calls it home and destroys a nearby settlement, setting it ablaze and killing … well, a lot of folks. And when he is killed via an arrow to a weak spot in his armor-like scales, he falls on the town and crushes it.
His death also sets off a struggle for the treasure that results in the Battle of the Five Armies. Basically, lots of bad stuff happens there before it’s restored to its former glory.
The Lord of the Rings is something of a favorite for both Luckey and Thiel. Luckey’s Anduril defense-tech company is named after the sword used by Aragorn. Thiel’s Palantir is a huge software company. And Thiel’s Mithril Capital, founded in 2012, takes its name from a precious metal mentioned in the books.
As for Erebor the bank, its charter says it plans to serve technology businesses, as well as the people who work at or invest in them. Among the areas of interest are AI, crypto, and defense. The bank will hold stablecoins on its balance sheet and will be headquartered in Columbus, Ohio, though it’s not planning any brick-and-mortar locations at present.
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