Some of the most successful entrepreneurs and investors in Silicon Valley are getting behind a new digital banking company. But, why?
What’s happening:
- Peter Thiel, Palmer Luckey and Joe Lonsdale have invested into new digital banking startup Erebor
Why it matters:
- Erebor is aiming to support startups that are unlikely to receive funding from traditional banks and will focus largely on early stage companies focused on digital assets, defense tech and manufacturing
Going deeper:
- Erebor has already filed for a United States bank charter and has publicly stated they plan to operate entirely digitally, without any physical locations or branches
- Erebor has also publicly stated they will leverage stablecoins for payments and global money transfers, which has become an emerging theme in American politics following the United States Senate passing the GENIUS Act to allow stablecoin issuers to operate with regulatory clarity for the first time ever
The fine print:
- Erebor has not yet been granted any federal regulatory approvals to begin operating in the United States
