Close Menu
Technology Mag

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    OpenAI Finally Launched GPT-5. Here’s Everything You Need to Know

    August 8, 2025

    Hoto’s SnapBloq Power Tools Are Inviting, Even If They’re Not the Best

    August 8, 2025

    Instagram’s Map is here, and this is how you can turn your location off

    August 8, 2025
    Facebook X (Twitter) Instagram
    Subscribe
    Technology Mag
    Facebook X (Twitter) Instagram YouTube
    • Home
    • News
    • Business
    • Games
    • Gear
    • Reviews
    • Science
    • Security
    • Trending
    • Press Release
    Technology Mag
    Home » Tech Billionaires Back Erebor in the Wake of Silicon Valley Bank Collapse
    Business

    Tech Billionaires Back Erebor in the Wake of Silicon Valley Bank Collapse

    News RoomBy News RoomJuly 15, 20253 Mins Read
    Facebook Twitter Pinterest LinkedIn Reddit WhatsApp Email

    “What I imagine is going on here is that should this become a new chartered bank … the bank would be providing this ‘cash in, obfuscated crypto out’ type of a product that would allow these agencies to be able to make payments,” he says.

    Anduril also knows how to sell to the US government, and Erebor can use some parts of Anduril’s growth strategy, says Rory McDonald, a business school professor at the University of Virginia who has studied Anduril. In Anduril’s case, Palmer Luckey and his cofounders started by targeting the US government’s border-security technologies, identifying them as a “fringe” part of the defense market. They offered an “imperfect but good enough technological solution and then [rode] the wave of improvement in that technology,” McDonald tells WIRED.

    High-risk startups in crypto, AI, and defense may be that fringe market for Erebor—especially crypto companies. Signature Bank and Silvergate Bank—both of which failed around the same time as SVB—had also aimed to corner the crypto business-banking market by offering crypto-focused services.

    Stephen Marcus, cofounder and general partner of Riot Ventures, which invests in some of the industries Erebor intends to serve, says Erebor will soon have to speak publicly about its products and determine how it will “communicate the stability” to potential business clients. “At the end of the day, these companies need access to liquidity, and they can’t afford to have their cash not accessible,” he says, noting the “notoriety of the investors and those that are booting it up might be helpful,” though they’ll have to “earn” companies’ trust outside the portfolio companies whose banking decisions they can influence more easily.

    Granted, that assumes Erebor gets that far; for all the deregulation making charter approvals speedier and more likely, regulators may see Erebor’s application as too unprecedented or systemically risky. According to Evey Guo, principal at lobbying firm and consulting group FS Vector (founded by the former chief compliance officer and general counsel of Circle), Erebor’s “novel elements” may elicit “additional regulatory scrutiny and require particularly robust controls.” Another banking industry specialist said Erebor’s “monocrop” client profile could also cause concern, as a lack of client diversity partially contributed to the bank collapses of 2023. Additionally, Baker, the senior fellow at Columbia, contends Erebor’s conservative approach to lending relative to its balance sheet may impose hurdles, as regulators have rejected previous banking proposals that shied away from lending.

    Michele Alt, the regulatory consultant, sees a potential clash between the crypto industry and incumbent banks, which are “two very powerful lobbies,” in the wake of these charter applications. Organizations like the American Bankers Association (ABA) and Independent Community Bankers of America (ICBA) may attempt to take legal action or otherwise object to some charter applications, as the ICBA has most recently in a letter to the OCC, “strongly” opposing the attempt by Protego’s subsidiary to enter the space. The outcome for Erebor, as well as the slew of stablecoin banking ventures popping up, depends on incumbents’ litigiousness and on the ability for banking regulators to function as arbiters upholding some integrity within a multitrillion-dollar banking system.

    “We know that [regulators] have deprioritized certain areas consistent with the policies of the current administration, but I would say, if not the federal banking agencies, who will regulate these banks?” Alt says.

    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email
    Previous ArticleNow Microsoft’s Copilot Vision AI can scan everything on your screen
    Next Article Chewy Promo Codes: $20 Off in July 2025

    Related Posts

    OpenAI Finally Launched GPT-5. Here’s Everything You Need to Know

    August 8, 2025

    Trump Is Undermining Trust in Official Economic Statistics. China Shows Where That Path Can Lead

    August 8, 2025

    Want a Different Kind of Work Trip? Try a Robot Hotel

    August 8, 2025

    Tornado Cash Developer Roman Storm Guilty on One Count in Federal Crypto Case

    August 7, 2025

    Nuclear Experts Say Mixing AI and Nuclear Weapons Is Inevitable

    August 7, 2025

    Inside the US Government’s Unpublished Report on AI Safety

    August 7, 2025
    Our Picks

    Hoto’s SnapBloq Power Tools Are Inviting, Even If They’re Not the Best

    August 8, 2025

    Instagram’s Map is here, and this is how you can turn your location off

    August 8, 2025

    Mini Ikea stores will be opening inside select Best Buy locations this year

    August 8, 2025

    Apple Intelligence’s ChatGPT integration will use GPT-5 starting with iOS 26

    August 8, 2025
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Don't Miss
    Business

    Trump Is Undermining Trust in Official Economic Statistics. China Shows Where That Path Can Lead

    By News RoomAugust 8, 2025

    Welcome back! Louise here. On Friday, President Trump fired one of the nation’s top economists…

    WIRED Tested Dozens of Blenders. The Best Has Lasted a Decade

    August 8, 2025

    8BitDo Pro 3 review: a super customizable controller that’s frustratingly limited on Switch 2 

    August 8, 2025

    This three-pack of fast Wi-Fi 7 routers is under $200 for the first time

    August 8, 2025
    Facebook X (Twitter) Instagram Pinterest
    • Privacy Policy
    • Terms of use
    • Advertise
    • Contact
    © 2025 Technology Mag. All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.