“What I imagine happens here is that if it becomes a new chartered bank … The bank would provide this type of product” in cash, obscuring the crypto “which would allow these agencies to be able to make payments,” he said.
Andundil also knows how to sell to the American government, and Erebor can use certain parts of Andundil’s growth strategy, said Rory McDonaldprofessor of business school at the University of Virginia studied Andundil. In the case of Andundil, Palmer Luckey and his co -founders began by targeting the border security technologies of the American government, identifying them as a part of “fringe” of the defense market. They offered a “fairly imperfect but fairly good technological solution and then (then) the wave of improving this technology,” McDonald told Wired.
High risk startups of crypto, AI and Defense can be this marginal market for Erebor – in particular cryptographic companies. Signing bank And Silvergate Bank– two of which failed roughly at the same time as SVB – also aimed at stuck the business cryptography market by offering crypto -oriented services.
Stephen Marcus, co-founder and general partner of Riot adventuresWho invests in some of the industries that Erebor intends to serve, says that Erebor will soon have to speak publicly about its products and determine how it will “communicate stability” to potential commercial customers. “In the end, these companies need access to liquidity, and they cannot afford to make their money accessible,” he said, noting that the “notoriety of investors and those that start it could be useful”, although they will have to “win” the confidence of companies outside of portfolio companies whose banking decisions can influence more easily.
Certainly, which assumes that Erebor goes so far; For all the deregulation making the charter approvals faster and more likely, regulators can consider the application of Erebor as too unprecedented or at systematic risks. According to Evey GuoDirector of the lobbying company and the FS Vector consulting group (based By the former Director of Compliance and Advocate General of Circle), the “new elements” of Erebor can cause an “additional regulatory examination and require particularly robust controls”. Another specialist in the banking industry said that Erebor’s “monocrop” customer profile could also arouse concern, because a lack of customer diversity has partially contributed to the collapse of the bank in 2023. In addition, Baker, the principal researcher of Columbia, support Erebor curator approach To lend in relation to his assessment can impose obstacles, as regulators have rejected Previous banking proposals which avoided loans.
Michele Alt, the regulatory consultant, sees a potential confrontation between cryptographic industry and outgoing banks, which are “two very powerful lobbies”, following these charter applications. Organizations such as the American Bankers Association (ABA) and independent community bankers in America (ICBA) can try to take legal action or otherwise to oppose certain charter requests, as ICBA has More recently, in a letter to the OCC, “strongly” opposing the attempted by the subsidiary of Proto to enter space. The result for Erebor, as well as the slew of the banking companies of Stablecoin appearing, depends on the dispute of operational operators and the capacity of banking regulators to operate as arbitrators to maintain a certain integrity within a multi-mining banlars banking system.
“We know that (regulators) have prioritized certain areas in accordance with the policies of the current administration, but I would say, if not federal banking agencies – which will regulate these banks?” Alt says.
