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Palmer Luckey, the founder of defense technology startup Anduril Industries, has reportedly backed a cryptocurrency-friendly banking startup that aims to revolutionize the financial sector.
What Happened: Luckey is backing a budding financial firm that aims to provide “stability” to Silicon Valley, The New York Post reported on Friday, citing insiders. The firm’s main objective is to assist tech entrepreneurs in growing their businesses, rather than focusing on maximizing returns on deposits.
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Luckey is said to be partnering on the bank startup with tech investor and Palantir Technologies Inc. (NASDAQ:PLTR) co-founder Joe Lonsdale
The startup, currently named “Erebor,” is a reference to the mountain where the dragon Smaug keeps his gold in J.R.R. Tolkien’s 1937 novel “The Hobbit.” However, insiders have hinted that the name might not be final and could be subject to change.
In addition to cash, Erebor plans to accept deposits in stablecoins, a form of digital currency whose value is tethered to a fiat currency, such as the U.S. dollar. The project is in its early stages, and the plans have not been finalized, according to the report.
Benzinga didn’t immediately hear back from Anduril and Lonsdale’s venture firm, 8VC, on the matter.
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Why It Matters: This comes just days after Luckey confirmed plans for Anduril’s initial public offering.
During an interview, Luckey emphasized that Anduril is being run “to be the shape of a publicly traded company,” highlighting the need for public status to compete for substantial defense contracts
The public listing plans come as Anduril reaches new valuation heights. The company recently raised $2.5 billion in fresh capital, catapulting its valuation to $30.5 billion. According to Forbes, his net worth was estimated to be $3.6 billion as of this writing.
