In the aftermath of the 2023 collapse of Silicon Valley Bank, billionaire Peter Thiel's group is stepping into a unique financial market niche by creating a new institution aimed at crypto companies and startups.
Creation of Erebor bank for startups and crypto companies
A billionaire group including Peter Thiel, Palmer Luckey, and Joe Lonsdale has filed for a banking charter for a new financial institution named Erebor. This institution aims to support startups and cryptocurrency companies struggling to secure financing in the wake of SVB's collapse. The new establishment seeks to fill the gap left by SVB and tap into a potentially lucrative market.
New recovery system by Circuit
Circuit, founded by Harry Donnelly, has recently launched a recovery solution for digital assets aimed at institutional clients. The system, powered by Automatic Asset Extraction (AAE) technology, enables institutions to avoid catastrophic losses. 'Institutions view asset recovery as a fundamental requirement, not a nice-to-have,' says Donnelly.
Blockchain strategy of Strategy
Strategy is expected to report significant unrealized gains from its bitcoin holdings, projecting $13 billion. Despite challenges in its core business, their bitcoin investments remain substantial, adding to their global profit strategy via digital assets.
In response to economic changes and the need for new financial solutions, entrepreneurs like Peter Thiel are developing new business models that address the market's needs left unaddressed after the collapse of Silicon Valley Bank.
