A group of banking and legal professionals is seeking to open a national bank in Columbus, Ohio, that would weave stablecoins into its business plan.
The proposed Erebor Bank aims to offer traditional banking products, along with virtual currency-related products and services, to businesses and individuals. The target market includes technology companies focused on virtual currencies, AI, defense, and manufacturing.
Other potential clients are payment service providers, investment funds, and trading firms such as RIAs, broker-dealers, proprietary trading firms, and futures commission merchants.
Erebor plans to hold certain virtual currencies on its balance sheet, which will be used to facilitate services tied to stablecoins and wrapped stablecoins and to pay transaction fees required for participation in certain supported blockchains.
The group, which plans to raise $225 million in initial capital, includes PayPal co-founder Peter Thiel and Anduril founder Palmer Luckey.
“The bank’s goal is to be the most regulated entity conducting and facilitating stablecoin transactions and to bring this modern form of traditional financial intermediation fully within the regulatory perimeter,” the application said.
Erebor would be headquartered in downtown Columbus with plans for another office in New York. Neither office will be physically accessible to the public to make deposits, receive withdrawals, or borrow money. Digital infrastructure will enable broader reach.