Author: Fairy, ChainCatcher
Editor: TB, ChainCatcher
Original Title: Peter Thiel Teams Up with Trump's Backer: Crypto Giants and Silicon Valley Elites Simultaneously Seize Crypto Banking
The wave of crypto banking is rising again.
Stablecoin giant Circle and Ripple have successively applied for US bank licenses, aiming to integrate into the federal regulatory system and custody their own assets. Meanwhile, Silicon Valley elites Palmer Luckey, Peter Thiel, and others have joined forces to establish a crypto-friendly bank called Erebor.
On one side, crypto enterprises are actively "entering the system," while on the other, tech elites are building their own system. This two-pronged attack may change the landscape of the US banking system.
Silicon Valley Elites Create Crypto Bank, Digital "Lonely Mountain" Rises
Silicon Valley power players are making a financial chess move.
Anduril co-founder Palmer Luckey is leading the charge, partnering with PayPal co-creator Peter Thiel, 8VC founder Joe Lonsdale, and others to build a new crypto bank called Erebor.
These billionaires, who are key financial backers of Trump in the US presidential election and representatives of the most influential tech capital, are trying to reposition themselves in the gaps of the traditional financial system.
Left: Peter Thiel, Right: Palmer Luckey
The name "Erebor" comes from the "Lonely Mountain" in "The Lord of the Rings" that holds hidden treasures, symbolizing wealth, power, and protection. In reality, Erebor aims to become the "gold mountain guardian" of the tech world.
In the wake of Silicon Valley Bank's (SVB) collapse and billions in funds being in limbo, Erebor waves the banner of a "new safe haven," targeting startups, crypto pioneers, and overseas tech companies eager to enter the US banking system, intending to occupy this blue ocean market that urgently needs filling.
Currently, Erebor has formally applied to US regulatory authorities for a national bank license, planning to build a federally licensed banking institution. According to the application documents, stablecoin business will be one of its core focuses. The bank will concentrate on stablecoin services anchored to real-world assets like the US dollar, striving to become the "most regulated stablecoin trading institution".
The management team is co-led by Jacob Hirshman, a former Circle advisor, and Owen Rapaport, a digital asset compliance expert, with Mike Hagedorn, a former New Jersey Valley National Bank executive, serving as president. Headquartered in Columbus, Ohio, with a New York office, it will operate fully digitally, with products and services covering mobile app and website.
Will this rising "digital Lonely Mountain" give birth to a new financial giant?
Crypto Legion Seizes Banking Industry
While tech giants are forging the "digital Lonely Mountain" Erebor, two crypto enterprises have chosen to enter traditional finance from within, embarking on an "integration" path.
Stablecoin issuer Circle and cross-border payment network Ripple have submitted bank license applications to US regulatory authorities within two days. Once approved, both companies will be formally incorporated into the federal regulatory system, subject to the Office of the Comptroller of the Currency (OCC) oversight, and comply with capital, liquidity, and risk control requirements equal to traditional banks.
Circle is applying for a "national trust bank" license, aiming to gain complete custody of its stablecoin reserves and provide crypto asset custody services for institutional clients, including tokenized stocks and bonds. Although this license does not allow cash deposit acceptance or loan issuance, it is sufficient for Circle to take a significant step forward on the institutional compliance path.
Ripple's ambitions are even larger: not only applying for a nationwide bank license but also simultaneously applying to access the Federal Reserve's main account system, seeking direct participation in federal payment network clearing transactions. This permission is extremely rare even among traditional financial technology companies. If approved, Ripple could directly custody the reserve funds of its stablecoin RLUSD at the Federal Reserve.
Previously, the OCC had been cautious about crypto, rejecting Kraken's bank license application in 2023. Currently, Anchorage Digital is the only digital asset company with a national trust bank license.
However, the regulatory wind is changing, with the OCC now led by Rodney Hood, nominated by Trump, which adds new possibilities for Circle and Ripple's "compliance upgrade".
Silicon Valley capital establishing a crypto bank, and crypto giants actively becoming crypto banks - these two paths are forming an encirclement in the ultimate game of US financial power.
A Hidden Line Reconstructing Financial Rules
Crypto journalist Eleanor Terrett once vividly compared financial license levels: "Main account is diamond level, bank license is platinum level, trust company is gold level, and money transmission license is silver level."
In this power coordinate system, Circle and Ripple's rush for bank licenses has long transcended a simple qualification upgrade, marking crypto enterprises standing at a position equal to traditional banks.
This not only means crypto currency products will be embedded in the existing financial system in a "native digital form" but, more importantly, programmable money and on-chain asset settlement logic are challenging the underlying architecture of traditional finance. As Federal Reserve payment expert Chris Colson said, this step "might open channels for broader institutional adoption and cross-border payments," suggesting stablecoins may truly enter the mainstream financial arena.
What Circle, Ripple, and Erebor are competing for is no longer just business space, but the "design rights" and "discourse power" in a new financial order: Who will control crypto asset custody? Who can build the clearing system? This competition concerns the future landscape of digital finance.
