Erebor, an emerging crypto bank, recently released a capital raising mnemonics declaring that they expect to obtain a banking license in half the normal time. If approved, the bank will integrate stablecoin at a fundamental level.
Some of Erebor's tech billionaire founders are Trump allies with direct connections to relevant regulatory agencies. This mnemonics clearly states that "their political network will complete this" at an extremely rapid pace.
Erebor: The Next Big Crypto Bank?
Since the collapse of SVB in 2023, the Web3 industry has not had a specialized bank for technology. Last month, a group of famous tech billionaires announced plans to fill this gap by launching Erebor, a new bank with a greater emphasis on crypto.
According to a recent report, the organization is planning to obtain regulatory approval much faster than expected.
It seems Erebor has recently released a capital raising mnemonics stating that the crypto bank will be fully operational by the end of this year.
Normally, this process can take a year or longer, so Erebor's investors are publicly suggesting that they will obtain regulatory approval twice as quickly.
How could this happen? Some of their top tech/crypto investors, such as Peter Thiel and Anduril founder Palmer Luckey, have become close allies of Trump. "Palmer's political network will complete this," the mnemonics declares.
Moreover, the organization is relying on the increasing collaboration between crypto and TradFi.
OCC, the agency handling bank licenses, has become closer to the industry in recent months. Its current chair, Jonathan Gould, is a former Bitfury director with notable connections to Erebor.
The mnemonics directly states that Erebor's co-founders have "unique connections with banking regulatory agencies," especially Gould.
In a press statement, an OCC representative did not directly address these bias claims:
"OCC carefully reviews every bank license application submitted based on the application's facts and in compliance with its statutory and regulatory requirements," an OCC spokesperson told Business Insider.
Pros and Cons of Approval?
Fairly speaking, the crypto industry certainly could use a bank serving its interests. Erebor intends to become the "most regulated entity implementing and facilitating stablecoin transactions," integrating Web3 at every level.
If successful, this organization could represent a major platform for TradFi and crypto integration.
However, the political corruption angle is unlikely to improve the industry's reputation. The crypto industry is facing significant criticism for substantially increasing the President Trump's net worth through business deals.
If "Palmer's political network" helps Erebor obtain a banking license in half the normal time, how would that look to outside observers?
In the long term, corruption and bribery allegations could become a serious issue. The crypto industry might benefit from this bank, but the rapid timeline seems unnecessary.
This capital raising mnemonics might just be empty talk, and quick approval may never become reality. However, if it does happen, it could become a major scandal.
