Foresight News reports, citing the Financial Times, that a group of billionaires from Silicon Valley in the United States has applied for a charter bank license in the U.S. to establish a national bank focused on supporting startups engaged in businesses such as cryptocurrency. After the collapse of Silicon Valley Bank in March 2023, some startups involved in high-risk businesses like cryptocurrency trading faced difficulties in securing funding in the U.S. The report cites insiders saying that the new bank is named 'Erebor' after the treasure site in 'The Lord of the Rings', and its main investors are Silicon Valley 'big donors' from the current Republican administration in the U.S., such as Peter Thiel.
According to application documents disclosed earlier this week, 'Erebor' Bank will be a national bank providing traditional banking products as well as products and services related to virtual currencies for businesses and individuals. The main target customers are enterprises participating in the 'innovation economy' in the U.S., especially those involved in cryptocurrency, artificial intelligence, defense, and manufacturing, as well as individuals working or investing in these companies, including those with 'insufficient credit channels'. The bank will also seek to collaborate with non-U.S. companies that 'intend to enter the U.S. banking system'.
