Erebor, an emerging crypto bank, recently disseminated a fundraising note claiming that it expects a banking charter in half normal time. If it is approved, the bank will integrate stablecoins at a fundamental level.
Several of the billionaire founders of Erebor are Trump allies with direct links with relevant regulators. This note indicated that their “political network will do it” at extreme speeds.
Erebor: The next big crypto bank?
Since the collapse of the SVB in 2023, the web3 industry has not benefited from a specific bank for dedicated technology. Last month, a group of eminent technological billionaires announced its intention to fill this gap by launching Erebor, a new bank that emphasizes the crypto.
According to a recent scoop, this institution plans to gain regulatory approval much faster than expected.
Apparently, Erebor has published a recent fundraising note claiming that the Crypto Bank will be fully operational by the end of the year.
Normally, this process could take a year or more, so Erebor’s investors openly suggest that it will gain regulatory approval twice as quickly.
How is it possible? Several of his main technological / crypto investors, such as Peter Thiel and the founder of Andundil Palmer Luckey, have become nearby Trump allies. “Palmer’s political network will do it,” said the memo.
In addition, the institution passes over increased cooperation between crypto and tradfi.
The OCC, which manages the banking charters, has come closer to the industry in recent months. Its current president, Jonathan Gould, is a former Bitfury executive with remarkable links with Erebor.
The memo directly said that the co-founders of Erebor had “unique connectivity to banking regulators”, specifically appointing Gould.
In a press release, a representative of the OCC did not directly deal with these favoritism affirmations:
“The West carefully considers each request for a banking charter submitted according to the facts of the request and in accordance with its legal and regulatory requirements,” said a spokesperson for the West Initiate of Business.
Advantages and disadvantages of approval?
To be fair, the cryptography industry could certainly use a bank suitable for its interests. Erebor plans to become “the most regulated entity leading and facilitating stablecoin transactions”, integrating web3 on all layers.
If it turns out a success, the institution could represent a major platform for the integration of Tradfi with the crypto.
However, the angle of political corruption cannot gain the reputation of the industry. The cryptography industry is in many Flak to considerably stimulate the net value of President Trump through commercial transactions.
If “Palmer’s Political Network” gets Erebor a banking charter in the usual half of the time, how will it turn to external observers?
In the long term, accusations of corruption and corruption could become a serious problem. The cryptography industry could benefit from this bank, but the accelerated calendar seems useless.
This fundraising memo could be boastful and rapid approval could never materialize. If this is the case, however, it can become a major scandal.
The technological billionaires of the Erebor post to use political friends for the approval of the cryptographic bank appeared first on Beincrypto.
