By Ateev Bhandari

July 2 (Reuters) -

Tech billionaire Joe Lonsdale said on Wednesday he is

investing in a new crypto-focused U.S. bank being launched by

Anduril co-founder Palmer Luckey that aims to fill the void left

by Silicon Valley Bank's collapse.

Before a March 2023 liquidity crisis, SVB had long been a

major primary banking channel for early-stage technology firms

and venture capitalists - entities deemed too risky by

traditional banks.

Many startups struggled to access capital and meet immediate

obligations such as payrolls after the bank collapsed.

Lonsdale, who co-founded Palantir ( PLTR ), said in an

emailed statement to Reuters that he is a "proud investor" in

the project.

The proposed lender, called Erebor, has applied for a

national bank charter and plans to serve technology businesses

in areas such as artificial intelligence, crypto, defense and

manufacturing, as well as individuals who work at or invest in

them, according to its charter application.

Like Anduril and Palantir ( PLTR ), Erebor takes its name from J.R.R.

Tolkien's "The Lord of the Rings" series. In the books, Erebor

is the "Lonely Mountain", a fortress whose treasures are

reclaimed from the dragon Smaug.

The application for Erebor, to be headquartered in Columbus,

Ohio, outlines a digital-only model, with a secondary office in

New York.

According to the charter application, the bank will be led

by Owen Rapaport and Jacob Hirshman, a former adviser to

stablecoin company Circle.

Erebor is also planning to hold stablecoins on its balance

sheet. A crypto asset class pegged to currencies such as the

U.S. dollar, stablecoins are designed to hold a steady value

backed by reserves.

Fintechs and established financial institutions are

increasingly adopting stablecoins to accelerate cross-border

payments faster, simplify settlements and expand access to

digital financial services.

The bank in a regulatory filing said it aims to be "the most

regulated entity conducting and facilitating stablecoin

transactions."

The Financial Times first reported the news and said that

the group of tech billionaires backing Erebor also includes

Peter Thiel's Founders Fund.

Luckey and Lonsdale are not expected to be involved in the

day-to-day management of the bank, the Financial Times report

said.

Luckey, Thiel, and a spokesperson for Erebor did not

immediately respond to Reuters' requests for comment.