Anduril Founder Palmer Luckey Launches Erebor Bank for Tech Businesses

Palmer Luckey, the founder of Anduril, is launching a new digital bank named Erebor, which is inspired by the fantasy series The Lord of the Rings. The bank is backed by Peter Thiel, the co-founder of Palantir, and Joe Lonsdale, the co-founder of Palantir, through their respective venture funds, Founders Fund and 8VC.

Erebor, named after the Lonely Mountain from The Hobbit, a prequel to The Lord of the Rings, has a complex history in the fantasy series. The mountain was once a prosperous kingdom but was later destroyed by a dragon named Smaug, who called it home. The dragon's death led to a struggle for the treasure, resulting in the Battle of the Five Armies, which caused significant destruction and loss of life.

Both Luckey and Thiel have a fondness for The Lord of the Rings, as evidenced by the names of their companies. Luckey's Anduril is named after the sword used by Aragorn, while Thiel's Palantir and Mithril Capital are named after a software company and a precious metal mentioned in the books, respectively.

Erebor the bank plans to serve technology businesses, as well as the people who work at or invest in them. The bank will focus on areas such as AI, crypto, and defense, and will hold stablecoins on its balance sheet. The bank will be headquartered in Columbus, Ohio, but it is not planning any brick-and-mortar locations at present.

The bank's charter indicates that it will provide financial services to startups and cryptocurrency companies, which are often underserved by traditional banks. The bank's focus on technology and innovation is in line with the interests of its backers, who have a history of investing in cutting-edge technologies.

The name Erebor, while inspired by a beloved fantasy series, also carries a dark history. The mountain was once a prosperous kingdom but was later destroyed by a dragon, and its restoration to former glory came at a great cost. This history serves as a reminder of the challenges and risks that come with innovation and entrepreneurship.

The launch of Erebor the bank is the latest in a series of businesses associated with Luckey and Thiel that pay homage to The Lord of the Rings. The bank's focus on technology and innovation, as well as its backing by prominent investors, positions it as a potential disruptor in the financial services industry.