• Silicon Valley billionaires apply for national banking license to create “Lonely Mountain” bank serving crypto companies and high-risk startups.

  • Bank targets $47 billion annual compliance gap in crypto fiat channels while leveraging Republican political connections for regulatory approval.

  • Innovative dual-service model combines traditional banking with crypto-specific services, potentially disrupting existing financial institution market share dynamics.

Silicon Valley billionaires led by Peter Thiel seek national banking license for “Lonely Mountain” crypto bank, targeting funding gaps left by Silicon Valley Bank collapse in 2023.

 

STRATEGIC LAYOUT BEHIND SPECIAL BANKING LICENSE

 

On July 2nd, the Financial Times revealed that a group of Silicon Valley billionaires is applying to U.S. regulators for a national banking license. They plan to establish a financial institution named “Lonely Mountain.” The bank explicitly lists cryptocurrency companies as core service targets. Additionally, it aims to fill the financing vacuum that high-risk innovative companies face after Silicon Valley Bank’s 2023 collapse.

 

Key facts from official application documents show:

 

  • Main investors include Peter Thiel and other Republican-backed tech giants (major donors to the previous administration)

  • Target customers focus on startups in cryptocurrency, artificial intelligence, defense, and manufacturing sectors

  • Simultaneous service to individual investors with “insufficient credit channels” and overseas companies seeking U.S. banking system entry

 

THREE DISRUPTIVE BUSINESS MODELS

 

Compared to traditional banks, “Lonely Mountain” bank’s design directly addresses industry pain points:

 

Dual Financial Service Architecture

 

The bank simultaneously provides traditional banking products and crypto-exclusive services (specific solutions remain undisclosed). It focuses on solving crypto companies’ limited fiat channels and inefficient cross-border settlement bottlenecks.

 

Political Resource Integration Advantages

 

Informed sources reveal that deep participation by Peter Thiel and other Republican donors may accelerate regulatory approval processes. These investors previously pushed the previous administration to relax crypto tax policies. Therefore, their political influence may pave the way for the new bank.

 

Risk Pricing Mechanism Innovation

 

The bank statement specifically mentions serving “customers rejected by traditional financial institutions.” This suggests possible development of credit assessment models based on on-chain data. Such models would replace traditional risk control systems.

 

MARKET GAPS NECESSITATE THIS CHOICE

 

This plan emerges at a critical time:

 

  • Historical lessons: Silicon Valley Bank’s collapse caused crypto companies like Circle to lose $3.3 billion in reserves

  • Current predicament: Federal Reserve reports show only 12% of U.S. banks willingly serve crypto companies in Q1 2024

  • Demand explosion: Coin Metrics data indicates compliant crypto fiat channel gaps reach $47 billion annually

 

JPMorgan analyst Sarah DeWitt notes: “Lonely Mountain essentially represents VC thinking transforming banking—trading capital tolerance for high-risk market pricing power.”

 

REGULATORY BATTLES AND INDUSTRY IMPACT

 

Current core disputes focus on three aspects:

 

License Approval Tug-of-War

 

The Office of the Comptroller of the Currency (OCC) must evaluate their anti-money laundering framework. Crypto business compliance becomes the focal point. Historical reference shows crypto bank Anchorage Digital’s license approval took 27 months.

 

Traditional Financial Forces Counteract

 

The American Bankers Association has already stated it will review “whether the bank circumvents securities business regulation in disguise.” This implies possible legal challenges.

 

Crypto Industry Landscape Reconstruction

 

If approved, “Lonely Mountain” may divert over 80% of institutional customer custody business from exchanges like Coinbase. The latter currently handles 74% of alternative fiat channels after Silicon Valley Bank’s collapse.

 

KEY OBSERVATION POINTS FOR SUBSEQUENT PROCESSES

 

Based on U.S. bank approval processes and industry dynamics:

 

  • OCC preliminary review typically requires 90 days (earliest progress disclosure in September)

  • Competition for crypto company fiat entry points will escalate (Circle has announced expanded banking partnership networks)

  • Policy support may double if Republicans win the 2024 election

 

This comprehensive analysis draws from core facts reported by the Financial Times and Xinhua News Agency. Data support comes from Federal Reserve reports and Coin Metrics research.

 

The “Lonely Mountain” initiative represents a significant shift in how Silicon Valley approaches financial services. Traditional banks have largely avoided crypto companies due to regulatory uncertainty and compliance costs. This gap creates opportunities for specialized institutions willing to navigate complex regulatory requirements.

 

The timing proves particularly strategic given ongoing regulatory clarity improvements. Recent court decisions and agency guidance provide clearer frameworks for crypto banking services. Consequently, new entrants can build compliant operations from the ground up.

 

Peter Thiel’s involvement signals serious institutional commitment. His previous investments in financial technology companies demonstrate understanding of regulatory challenges. Moreover, his political connections may facilitate smoother approval processes during Republican administrations.

 

The dual-service model addresses real market needs. Crypto companies require both traditional banking services and specialized crypto custody solutions. Current providers often excel at one but struggle with comprehensive offerings. “Lonely Mountain” aims to bridge this service gap.

 

Risk assessment innovation particularly intrigues industry observers. Traditional credit scoring relies heavily on legacy financial data. Blockchain technology enables real-time analysis of on-chain financial behavior. This approach could revolutionize lending decisions for crypto-native companies.

 

Competition implications extend beyond crypto banking. Success could inspire other specialized banking ventures targeting underserved sectors. Traditional banks may also expand crypto services to prevent customer migration.

 

Regulatory approval remains the primary uncertainty. The OCC maintains strict standards for new bank licenses. Additionally, crypto-focused institutions face extra scrutiny regarding compliance frameworks and risk management capabilities.

 

Market reactions will likely intensify as approval processes advance. Crypto companies desperately need reliable banking partnerships. Any progress toward “Lonely Mountain” approval may boost sector confidence and valuations.

 

The ultimate success depends on execution and regulatory navigation. However, the initiative clearly addresses genuine market inefficiencies. This combination of need and opportunity suggests strong potential for transformative industry impact.

〈Silicon Valley Capital Builds Crypto Bank “Lonely Mountain”: Billionaires Bet On Financial Gap Revolution〉這篇文章最早發佈於《CoinRank》。