Erebor Bank, a cryptocurrency-friendly bank, became the first new bank to be granted a national banking license during Trump's second term, after raising $635 million in initial Capital .
According to the Wall Street Journal, Erebor aims to fill the market gap created by the collapse of Silicon Valley banks, amid US regulators' approval of a new billionaire-backed bank.
- Erebor received its national banking license, described as the first new bank to be established during Trump's second term.
- The bank raised $635 million in initial Capital .
- Objective: To fill the void left by the collapse of Silicon Valley banks.
Licenses and deployment context
Erebor Bank was granted a national banking license and was described as the first newly established bank to receive this type of license during Trump's second term.
According to the Wall Street Journal, this is a cryptocurrency-friendly bank. Previously, there were also reports that US regulators had approved the launch of Erebor, a new bank backed by billionaires.
The approval and licensing process took place against the backdrop of a turbulent period in the US financial market related to the banking ecosystem serving technology and startups, creating a demand for alternative service channels.
Initial Capital and the gap following the Silicon Valley bank collapse.
Erebor raised $635 million in initial Capital and aimed to fill the market gap following the collapse of Silicon Valley banks.
The $635 million Capital is stated as the initial capital for the bank to deploy its operations in a cryptocurrency-friendly manner. The core objective is to capitalize on opportunities arising from previous banking disruptions in Silicon Valley.
This gap-filling strategy reflects the unmet needs of businesses and customer groups impacted by bank failures, particularly in technology- and digital asset sectors.
