Billionaires Consider Erebor Bank to Support Bitcoin and Crypto Startups After Silicon Valley Bank Collapse

Key Points

1. Erebor aims to fill the gap left by SVB's collapse by focusing on high-growth, high-risk ventures, including crypto startups.

2. Peter Thiel, along with other notable investors like Palmer Luckey and Joe Lonsdale, brings credibility and expertise to Erebor, with Thiel's advocacy for Bitcoin highlighting its commitment to the crypto sector.

3. SVB's collapse in March 2023 significantly impacted the venture capital and startup communities, leading to the downfall of other banks like Silvergate, Signature, and First Republic.

4. Erebor is applying for a US bank charter to operate fully as a bank, targeting firms that traditional banks now avoid due to increased risk aversion post-SVB collapse.

5. Despite SVB's collapse, it continues to operate as a division of First Citizens Bank, maintaining its focus on private equity, technology, and life sciences sectors.