Financial Times: Silicon Valley tycoons plan to establish a bank to support crypto startups

ChainCatcher news, citing a report from the British Financial Times by Xinhua News Agency, a group of billionaire Silicon Valley entrepreneurs has applied for a charter banking license in the United States, preparing 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 have faced difficulties in financing in the U.S. The report cites sources familiar with the matter, stating that the new bank is named "Erebor," after the treasure location in "The Lord of the Rings," with major investors being Silicon Valley big donors from the current Republican administration, such as Peter Thiel.

According to application documents disclosed earlier this week, "Erebor" Bank will be a national bank providing traditional banking products and services related to virtual currencies for businesses and individuals. The primary target customers are companies participating in the U.S. "innovation economy," especially those in the fields of cryptocurrency, artificial intelligence, defense, and manufacturing, as well as individuals working for or investing in these companies, including those with "insufficient access to credit." The bank will also seek to collaborate with non-U.S. companies "looking to enter the U.S. banking system."

According to reports, "Erebor" Bank's headquarters will be located in Columbus, Ohio, with an office in New York City, providing only online customer services.