According to the Financial Times Report, a group of tech billionaires led by Palmer Luckey, co-founder of military contractor Anduril, is launching a US bank called Elebor to serve startups, including Bitcoin and other crypto companies.
According to those familiar with the issue, the bank will be supported by high-tech investors, including the founder of venture capital firm 8VC Joe Lonsdale, and technology investors, including co-founder of defense group Palantile Peter Tiels.
Elebor is run by CEOs and co-founders of AER Compliance Owen Rappaport, who previously worked as circle advisors, and co-CEO Jacob Hershman. Senior Vice President Mike Heghosn, Valley National Bank based in New Jersey, will serve as president.
“Banks will be national banks, providing traditional banking products and cryptocurrency-related products and services to businesses and individuals,” according to the report.
Elebor’s target market is a company in the US innovation economy, including digital currency, artificial intelligence (AI), defense and manufacturing. They also serve non-US companies that work and invest in these companies and are seeking access to the US banking system.
The bank’s founders aim to cover the gap in which Silicon Valley Bank (SVB) served its crypto business after its failure in March 2023. Since then, many Bitcoin and crypto startups have struggled to get the same access from traditional banks.
Elebor said in his filing they would “differentiate” by working with clients who “have not been fully served by traditional or destructive financial institutions, particularly in terms of insufficient access to credit.”
Banks will also focus on stubcoin, a digital asset that is fixed in real assets like the US dollar, according to the report. Elebor aims to become “the most regulated entity that carries out and promotes stable transactions.”
Elebor is headquartered in Columbus, Ohio with additional offices in New York. Ererbor plans to provide all services through digitally only customer service.
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