A new bank has been approved for the first time in U.S. President Donald Trump's second term. Crypto-focused startup Erebor Bank has received authorisation to operate across the United States, Cointelegraph reported on Feb. 7, citing the Wall Street Journal.
Erebor has about $635 million in capital and plans to target startups, venture firms and wealthy individuals left out of financial services after the collapse of Silicon Valley Bank. The bank is backed by prominent Silicon Valley investors including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC and Elad Gil. Oculus co-founder Palmer Luckey is joining the board but will not be involved in management.
Erebor plans to provide specialised lending services to advanced technology companies such as those in AI, robotics and the space industry. It also plans to build a financial network that enables 24-hour transactions by introducing a blockchain-based payment system. It is also pursuing loans secured by crypto holdings or unlisted shares, and financing support for purchases of AI semiconductors.
Erebor's valuation rose to $4 billion following a $350 million investment led by Lux Capital.
Chi-gyu Hwang
delight@d-today.co.kr