A consortium of billionaires, including Peter Thiel, is set to establish a new financial services firm named Erebor, aimed at addressing the void left by the March 2023 collapse of Silicon Valley Bank. This new bank will cater to startups and cryptocurrency firms, as reported by the Financial Times, citing anonymous sources. Erebor has applied for a US bank charter, enabling it to operate as a bank. Thiel’s Founders Fund is among its initial investors, alongside Palmer Luckey of Anduril and Joe Lonsdale of 8VC. Thiel, a prominent figure in the crypto realm, is known for his support of Bitcoin and digital assets. Erebor plans to be a significant lender for early-stage startups and other high-risk businesses facing challenges in securing capital due to stricter banking regulations. The failure of Silicon Valley Bank, which served a large portion of venture-backed tech firms, triggered a wider banking crisis, impacting the digital asset market significantly. Read more AI-generated news on: https://app.chaingpt.org/news

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