INSUBCONTINENT EXCLUSIVE:
A group of billionaires, including Peter Thiel, is reportedly planning to launch a new financial services firm to fill the gap left by the
collapse of Silicon Valley Bank in March 2023.The new bank, to be called Erebor, will focus on serving startups and cryptocurrency
companies, according to the Financial Times, which cited anonymous sources familiar with the plans
In addition to Thiel, the group reportedly includes Palmer Luckey, co-founder of defense contractor Anduril, and Joe Lonsdale, founder of
8VC.Thiel, who co-founded PayPal in the late 1990s, is well-known in the crypto space for his advocacy of Bitcoin (BTC) and digital assets
As Cointelegraph reported, Thiel backs crypto exchange Bullish, which recently submitted regulatory filings for an initial public offering
rates eroded the value of its long-term bond investments, triggering a bank run and liquidity crisis when too many clients tried to withdraw
As Cointelegraph reported at the time, Silicon Valley Bank was the first FDIC-insured bank to fail that year.Its collapse left a massive gap
failure set off a domino effect, contributing to a broader banking crisis that also took down Silvergate Bank, Signature Bank and First
Republic Bank.There were several high-profile bank failures in the United States in 2023
Source: FDICThe fallout dealt a heavy blow to the digital asset market, with crypto investment funds losing 10% of their assets under
management in just one week.As Harvard Business Review noted, the collapse of Silicon Valley Bank specifically put significant pressure on
lending within the venture capital ecosystem.Despite its collapse, Silicon Valley Bank still operates today as a division of First Citizens
Bank, which acquired the company in late March 2023
Its focus continues to be on private equity, technology and the life sciences industry.Magazine: Pakistan will deploy Bitcoin reserve in
DeFi for yield, says Bilal Bin Saqib
