After SVB's Collapse, Tech Leaders Apply to Launch New Digital Lender for AI and Crypto
American defense technology company Anduril's co-founder Palmer Luckey is leading the effort with support from Founders Fund, which is connected to tech investor Peter Thiel, as well as Joe Lonsdale, the co-founder of Palantir, who is a prominent political donor. Their aim is to build a secure, innovation-oriented banking technology infrastructure that would support high-risk industries like crypto, artificial intelligence, defense, and new manufacturing fields.
The company wrote in its application for a national bank charter that Erebor would exist as a fully digital bank with its home base in Columbus, Ohio, and a second office in New York. The bank will serve not just tech businesses but individuals who work or invest in those sectors—addressing the financial vacuum that SVB's abrupt cash crunch left in March 2023.
Erebor is led by co-CEOs Owen Rapaport and Jacob Hirshman, who was an advisor to stablecoin issuer Circle. Their vision encompasses a regulated system that would make Erebor the most compliant institution when it comes to stablecoin transactions. The bank will even keep stablecoins on its balance sheet, an unusual step in traditional banking.
Stablecoins, which are tied to traditional currencies such as the U.S. dollar, are gaining traction among banks and fintech outfits for facilitating faster cross-border payments, streamlining settlements, and providing more access to digital finance.
SVB had at one time been the financial backbone of the earliest-stage startups, but quickly, it and the venture capitalists with whom it worked found themselves scrambling after the bank collapsed. With the arrival of Erebor comes a new financial support system for tech-driven firms that traditional banks still consider too risky.
Although Luckey and Lonsdale won't be running Erebor day-to-day, their backing shows serious intentions to change around banking for the tech economy. With a commitment to secure digital finance, regulated crypto operations, and AI-driven innovation, Erebor could be a blueprint for the next generation of tech-first banking.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
2 hours ago
- Business Times
Xiaomi founder's bold EV bet is paying off where Apple's failed
[HONG KONG] Lei Jun, founder and chairman of Xiaomi, the only tech company to have successfully diversified into carmaking, could not resist. Speaking at a triumphant launch event in Beijing late last month for Xiaomi's second electric vehicle (EV), a long-anticipated SUV, Lei pointedly mentioned Apple, which spent a decade and US$10 billion trying to make a car before giving up last year. 'Since Apple stopped developing its car, we have given special care to Apple users,' he said, noting that owners of the American giant's iPhones would be able to seamlessly sync their devices to Xiaomi's vehicles. The not-so-subtle dig was followed by a flex: Xiaomi then said it had received more than 289,000 orders for its new sport utility vehicle within an hour of its announcement, more than its first EV, a sedan launched in March 2024. Xiaomi succeeding where Apple failed has burnished Lei's reputation, made his company one of the most valuable in China and shaken up both the tech and automobile industries. The collapse of Apple's moonshot car programme has only underscored the effectiveness of Xiaomi's grounded approach, which took inspiration from proven designs from Tesla and Porsche Automobil Holding while staying true to the affordable ethos that's made it a cult brand for Gen Z consumers. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Crucially, it also launched into the most fertile EV ecosystem in the world – China. With state subsidies, existing charging infrastructure and a ready made supply chain, Xiaomi had a structural tailwind Apple lacked. Xiaomi declined to comment for this story. Lei and Xiaomi's 'charisma, brand recognition and ecosystem cannot be underestimated', Yale Zhang, the managing director of Shanghai-based consultancy Automotive Foresight, said. 'It's a big influence on young consumers who have filled their homes with Xiaomi products. When it comes time to buy an EV, they naturally think of Xiaomi.' But building cars is a far more complex, capital intensive challenge than making phones or rice cookers. It requires mastering safety regulations, global logistics and production at scale, all while competing against legacy automakers with long histories and large model lineups. Any international expansion will also require navigating complex geopolitical landscapes. As one of the first tech giants to actually manufacture a car, Xiaomi is in uncharted territory. Apple's failings Apple's car project, internally dubbed Project Titan, failed in large part because it was not just an EV – it was at one point an attempt to leapfrog the auto industry with a fully autonomous, Level 5 self-driving machine. Its goals were lofty and the direction constantly shifting, the result being over a decade of effort with nothing to show. Lei, 55, was comparatively stingy with time and resources and staked his personal reputation on the endeavour, claiming that making cars would be his 'last entrepreneurial project'. Xiaomi's public narrative is that Lei and his team learnt by visiting multiple Chinese automakers, including Zhejiang Geely Holding Group and Great Wall Motor, and talked to more than 200 industry experts in some 80 meetings. The reality is also that he used Xiaomi's reputation as an innovative consumer behemoth to get close to China's large carmakers and pick off their top talent. Geely and its billionaire founder Li Shufu welcomed Lei to the automaker's research institute in Ningbo in the months leading up to Xiaomi's announcement that it would enter the car business to discuss topics, including potential collaboration. It's Geely lore that Lei added the WeChat contacts of many staff at the institute, including then-director Hu Zhengnan. Hu later joined Shunwei Capital Partners, the investment firm co-founded by Lei. Recruitment tactics Xiaomi headhunters also courted Geely staff intensely, according to sources familiar with the matter. While it's common for talent to move between companies in the same industry, it was unusual to see this level of aggressiveness around recruitment, the sources said, asking not to be identified discussing information that's private. Geely did not respond to a request for comment. Hu, known for his love of the German luxury marque Porsche, was one of the team members credited as being instrumental to developing Xiaomi's EV business, Lei said at the SU7 launch in 2024. Lei added that Hu left his previous employer after his contract ended. Other executives who joined Xiaomi came from companies including Baic Motor, BMW, Saic-GM-Wuling Automobile, the General Motors joint venture with Saic Motor and Wuling Motors Holdings, and auto supplier Magna Steyr. Besides assembling top Chinese automaking talent, Lei made a prescient bet on investing in a self-controlled supply chain, insulating Xiaomi's operation from manufacturing vagaries. This came from painful lessons learnt in Xiaomi's early smartphone-producing days, when external suppliers would cut off components unpredictably. In 2016, some members of Xiaomi's supply chain team displeased Samsung Electronics representatives and the South Korean firm threatened to halt the supply of its industry-leading Amoled screens. To mend the fractured relationship, Lei flew to Shenzhen to meet with Samsung's China head at the time. The pair drank five bottles of red wine during their dinner meeting, according to a Xiaomi company biography, and Lei also made multiple trips to Samsung's headquarters in South Korea to apologise and negotiate the resumption of supply. Representatives from Samsung declined to comment. After Xiaomi went into the carmaking business, it invested into almost all parts of the EV supply chain, from batteries and chips to air suspension and sensors. It pumped more than US$1.6 billion via Shunwei or other Xiaomi-led funds into over 100 supply chain companies between 2021 and 2024, according to data compiled by Chinese analytics firm Zhangtongshe and Bloomberg. The components from some of the companies that Xiaomi invested in have ended up in its cars, such as lidars from Hesai Technology and onboard chargers and voltage converters from Zhejiang EV-Tech. With the 10 billion yuan (S$1.8 billion) it committed to the first phase of its EV venture, Xiaomi also built its own factory, rather than going down the contract manufacturing route that some Chinese makers, including Nio and Xpeng, did when they started out. 'Among tech companies that now build EVs, those who previously had hardware products seem to be more successful than those who only had software products or information services,' said Paul Gong, UBS Group's head of China autos research. Copycat allegations Despite its early success, there are many who argue Xiaomi's one hit car is copied from elsewhere, and that a sole successful vehicle does not make a successful auto producer. Lei's aggressive approach has also raised hackles in China's car industry. Yu Jingmin, vice-president of Saic's passenger car division, reportedly described Xiaomi's approach as 'shameless' in a critique of the SU7 resembling Porsche. The SU7 has been colloquially dubbed 'Porsche Mi' by netizens. Saic did not respond to questions about Yu's remarks. Xiaomi's design team, led by former BMW designer Li Tianyuan, has defended the SU7's aesthetics, emphasising that the choices were driven by aerodynamic efficiency and performance benchmarks. In late March, there was another setback after a fatal accident involving the SU7. The car had its advanced driver assistance technology turned on before the crash, which afterwards led to authorities reining in the promotion and deployment of the technology. The usually vocal Lei kept a low profile on social media for more than a month post the March accident. He returned to more active engagement in May with a missive that said this period of time was the most difficult in his career. Fortunately for Xiaomi, its consumer base is sticky. Known as 'Mi Fans', the loyal customers have played a pivotal role in the company's rise. Xiaomi cultivated this fandom early on by prioritising user feedback and the grassroots allegiance has helped it build strong brand equity, especially in China. The SU7 has remained a top-selling model even after the accident in March. Indeed, dealers have reported that nearly 50 per cent of customers plump for the SU7 without comparing it to other brands. 'A significant number of older consumers are buying the SU7 for their children, indicating that the model has built trust among more conservative buyers thanks to its safety and quality,' said Rosalie Chen, a senior analyst from investment research firm Third Bridge. Small scale Xiaomi has set a delivery target of 350,000 units in 2025, up from its previous goal of 300,000, buoyed by demand for the newly launched YU7 and a ramp-up in production. The starting prices for the SU7 sedan, at 215,900 yuan, and its SUV, at 253,500 yuan, make them competitive alternatives to models such as Tesla's Model 3 and Model Y. The EVs are also showing financial promise. Xiaomi posted record revenue for the first quarter this year, driven by car and smartphone sales. Its EV division is expected to turn profitable in the second half of 2025, Lei said in an investor meeting in June. But even if the popularity of Xiaomi's EVs can spring beyond the company's devoted base, production is still on a much more boutique scale. China's top car brand, BYD, sold around 4.3 million EVs and hybrids last year, many overseas, while Tesla moved about 1.8 million vehicles globally. Toyota Motor, the world's No 1 automaker, sold some 10.8 million vehicles and boasts a lineup of approximately 70 different models. Lei does not seem to be prioritising the mass market of below US$20,000 yet, which drives significant volume and is where BYD dominates, Automotive Foresight's Zhang said. Without a lineup in that segment, Xiaomi cars will remain niche purchases for middle to higher-income consumers and Xiaomi may face the same risks as Tesla, which is seeing its sales slump exacerbated by a narrow consumer base and limited models. Nonetheless, Lei seems buoyed by Xiaomi's early wins and is now looking at global expansion. Xiaomi will consider selling cars outside China from 2027, he said last week. Success or otherwise, the European Union, the US and Turkey have all slapped tariffs on Chinese EVs, but Xiaomi wants to set up an R&D centre in Munich and may test sales starting in European markets such as Germany, Spain and France when the time is right, Chinese media 36Kr reported in April. 'Xiaomi is a latecomer to the auto industry,' Lei admitted on Weibo in June. But, he said, in a market driven by technology and innovation and the rising global influence of China's EV culture, 'there are always opportunities for latecomers'. BLOOMBERG
Business Times
2 hours ago
- Business Times
Still sharp at 100: Dr Mahathir's century of power, provocation and vision
[KUALA LUMPUR] Just weeks ago, Dr Mahathir Mohamad, 99, was zipping through city streets in Proton's first electric vehicle, the eMas 7. Then he went online to share his thoughts, turning his test drive into a car review that quickly made the rounds and drew praise on social media. Not long after that, he got behind a microphone to dissect the Iran-Israel conflict on his self-launched podcast, which draws nearly 150,000 views weekly. His frame has thinned, and his gait, slowed, but his gaze remains steady and his remarks, pointed. In his trademark caustic style – one that many have grown used to and even fond of – he delivered his comments on the US' involvement in the Middle East conflict elliptically: 'Hooray. Now we know who is fighting whom in the Middle-East. We know who is attacking Iran, and who is defending Israel. Need we say more?' Dr Mahathir, who turns 100 on Thursday (Jul 10), continues to show up five days a week at his office in Putrajaya, writing the latest chapters in the life of Malaysia's longest-serving prime minister. It is a milestone birthday for the man who continues to engage, provoke, and remain relevant in a country he has helped shape. In June, he joined forces with opposition parties – Parti Islam Se-Malaysia (PAS) and Parti Pribumi Bersatu Malaysia (Bersatu) – to form the Malay People's Secretariat. Framed as a 'big umbrella to save Malays', the initiative aims to address issues affecting the Malay community. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up He has also criticised the United States President Donald Trump's foreign policy and tariffs, describing the American leader as 'irrational and living in an old world'. Father of modernisation and controversy In his second term as Prime Minister, Mahathir Mohamad became the world's oldest-serving state leader. PHOTO: MAHATHIR MOHAMAD Over the decades, Dr Mahathir has been many things to many Malaysians: visionary, authoritarian, reformer, power broker. His achievements include vast infrastructure projects, among them the North-South Expressway, Kuala Lumpur International Airport (KLIA), Putrajaya and the Petronas Towers. He is also credited with the bold economic reforms that ushered in industrialisation and lifted the country into middle-income status. Critics decried cronyism when he doled out lucrative concessions to those he hand-picked – figures such as Robert Kuok, Syed Mokhtar Albukhary, Berjaya's Vincent Tan, the late Ananda Krishnan and Genting's Lim Goh Tong – many of whom went on to build regional and global empires. Professor Wong Chin Huat, a political scientist at Sunway University, said: 'Under his watch, industrialisation and the service sector gained momentum, infrastructure such as highways and airports flourished, and Malaysia became a regional hub for affordable higher education.' Prof Lau Zhe Wei, associate professor at the International Islamic University Malaysia, called him the 'father of modernisation', crediting his authoritarian style for pushing through mega-projects and policy shifts that redefined Malaysia's economy and standing. But Dr Mahathir's record is deeply contested. He was premier during the 1988 judicial crisis, during which he dismissed top judges. He also pushed through a sweeping constitutional amendment that curbed the monarchy's powers. Then there was 1987's Operation Lalang, under which more than 100 activists and opposition figures were detained without trial, leaving a deep scar on Malaysia's democratic institutions. Prof Wong, referring to Dr Mahathir's tendency to centralise power and sideline rivals to achieve his political aims, said: 'He perfected Machiavellianism in Malaysia.' His critics say that his willingness to bend institutions and break norms compromised the integrity of Malaysia's political system. To contain the rising influence of the Islamist party PAS, he expanded bureaucratic Islamisation – despite identifying as a modernist. Still, many credit him for setting the stage for Malaysia's economic take-off. His Vision 2020 blueprint, which aimed to turn Malaysia into a developed nation by 2020, catalysed industrial growth and liberalised private education. The country did not make it to the ranks of developed nations on time, but his push for it nonetheless left an enduring impact on national aspirations. Geopolitical defiance Dr Mahathir's defiance wasn't confined to domestic politics. On the international stage, he routinely clashed with Western powers, often championing developing nations. In one memorable example, he called financier George Soros a 'moron' for his role in the 1997 Asian financial crisis. He also forged a new foreign policy path by pivoting to Asia. His 'Look East' policy encouraged Malaysians to emulate Japan and South Korea, rather than the West – a vision that shifted trade patterns, corporate culture and diplomatic alignment. In Tokyo and Seoul, he remains a respected statesman. His often-tense relationship with Singapore's founding leader Lee Kuan Yew was part rivalry, part mutual admiration. The two frequently clashed on race, trade, water rights and regional politics – but always from positions of equal intellectual standing. The unresolved feud over the Johor-Singapore bridge became symbolic of their broader push-pull dynamic. The national car ambition A first-generation Proton Saga model at the Proton Excellence Centre in Selangor, Malaysia. PHOTO: TAN AI LENG, BT Dr Mahathir's industrial dreams took physical form in Proton, Malaysia's first national carmaker. Launched in the 1980s, the brand became a symbol of self-sufficiency and national pride. But the car company was unable to compete with international carmakers and required multiple state-led rescues – until China's Geely acquired a controlling stake in 2017. Today, Proton still ranks second in Malaysian car sales, with over 150,000 units sold in 2024 alone; the name is buoyed by popular models like the Saga sedan and X50 compact SUV. With the brand no longer fully Malaysian, it is a reminder that Dr Mahathir's ambitions have sometimes been outpaced by market realities. Proton's story mirrors his broader legacy – bold nation-building, but not without cost. Crisis management The ringgit was pegged at RM3.80 to the US dollar during Asian financial crisis in 1997. PHOTO: BT FILE Many Malaysians view the political titan as the figure who successfully navigated the nation through challenging periods, notably the 1997 Asian financial crisis. As currencies collapsed and capital fled, Dr Mahathir stunned the world by rejecting the International Monetary Fund's (IMF) prescription and imposing capital controls. He pegged the ringgit, restricted foreign exchange and banned the trading of Malaysian shares on Singapore's Clob counter. His unconventional strategies, though widely condemned by foreign investors and the IMF, were instrumental in stabilising Malaysia's economy, giving it the necessary space to recover. Comeback king The two-time Prime Minister Mahathir Mohamad was defeated for the first time in 53 years in the 2022 general election. PHOTO: MAHATHIR MOHAMAD'S FACEBOOK He stepped down on Oct 31, 2003, after having served for 22 years. But in 2018, at age 92, he returned to power, leading the opposition Pakatan Harapan to a shock election victory that ended Barisan Nasional's 61-year rule. Teaming up with long-time foe Anwar Ibrahim and former allies like Muhyiddin Yassin and Lim Kit Siang, he pledged to reform the system he once built. But the unity proved fleeting. Internal power struggles, especially over his promise to hand power to Anwar, unravelled the coalition. In 2020, Dr Mahathir resigned from the prime ministership and from party leadership, citing betrayal within his own camp. At 97, in the general election in 2022, he suffered his first defeat in 53 years, securing just 6.8 per cent of the vote – below the threshold needed to retain his deposit. It was a dramatic end to his long political career. 'Had Mahathir bowed out in early 1997 or before May 2020 to make way for Anwar, he would have been widely respected for his contributions,' said Prof Wong. Still stirring the pot Malaysia's former prime minister Mahathir Mohamad and his wife, Dr Siti Hasmah Mohamad Ali. The couple have been married for 65 years. PHOTO: MAHATHIR MOHAMAD'S FACEBOOK Even now, his comments remain influential, if also controversial. In a social media post in 2024, he criticised the signage in a Kuala Lumpur mall where the Chinese characters appeared larger than the Malay text. 'Have we become part of China?' he asked. The backlash prompted businesses to revise their signage, and local councils conducted compliance inspections. His comments show a growing focus on race and religion. Once seen as practical, he is now viewed by many as sowing division. Prof Wong quipped that Dr Mahathir's unrelenting pursuit of political relevance may be 'the secret to his longevity'. With his 100th birthday approaching, the elder statesman's contributions to Malaysia are still a big topic of discussion. While many praise him for modernising the country, he is also criticised for harming democratic institutions. He is viewed as a significant leader, but also as someone who represents Malaysia's ongoing challenges with democracy. His continued relevance today underscores his unique place in Malaysian history. As a centenarian leader, his vision, determination and controversies have undeniably shaped the nation. His legacy, however, remains a topic of debate. 'He will forever be remembered as the architect of modern Malaysia and a figure whose influence transcends generations,' said Prof Lau.
Straits Times
14 hours ago
- Straits Times
FIA head Ben Sulayem laughs off 'reign of terror' jibe
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: FIA President Mohammed Ben Sulayem addresses delegates during the FIA General Assembly at the Kigali Convention Center, in Kigali, Rwanda December 13, 2024. REUTERS/Jean Bizimana/File Photo SILVERSTONE, England - FIA head Mohammed Ben Sulayem laughed off talk of a 'reign of terror' inside motorsport's world governing body and promised on Sunday the coming presidential election would be fair and transparent. The Emirati is seeking a second term in December after being first elected in 2021, with American Tim Mayer the sole declared opponent. Mayer announced his candidacy on Friday ahead of the British Formula One Grand Prix at Silverstone, telling a press conference he saw a "failure in leadership" at the FIA. "Those people work very hard. They deserve leadership that provides them with tools, with a vision, with resources and more than anything else does not have a reign of terror every time they walk into the office," Mayer said. Ben Sulayem found the assertion ridiculous. "I just laughed. I actually had a smile. I said whoever is saying this, they are disconnected with the FIA. Honestly," he told Reuters. "You go to the FIA and just enter and see. Sit with them, tell them it's just between you and them, and ask them the question. I think maybe he's confusing the period," he added. Top stories Swipe. Select. Stay informed. Singapore First BTO project in Sembawang North to be offered in July HDB launch Singapore Woman on SMRT bus 190 injured after bottle thrown at vehicle leaves hole in window Asia 'Don't be seen in India again': Indian nationals pushed into Bangladesh at gunpoint Asia Two women fatally stabbed at bar in Japan by man Business High Court orders Instagram seller to pay Louis Vuitton $200,000 in damages over counterfeit goods Singapore MOH studying 18 proposals to integrate TCM into public healthcare Asia Malaysian commando dies during military diving exercise off Kuantan coast Singapore His world crashed when he got F9 in O-level Tamil but PropNex co-founder Ismail Gafoor beat the odds The FIA headquarters in Paris is on the Place de la Concorde, where from 1793-94 public executions by guillotine were carried out during the French revolutionary 'Reign of Terror'. There has been a high turnover of senior staff since Ben Sulayem took office, including former Deputy President for Sport Robert Reid who resigned in April. "Decisions are being made behind closed doors, bypassing the very structures and people the FIA exists to represent," Reid said then. Ben Sulayem, whose reign so far has featured a number of controversies including statute changes that opponents say make it harder for rivals to stand against him, defended his record. "Have you ever read any article where I said negatively about a single person? That's not me," he said. Reminded he had told Reuters in May that he had "cleaned up the FIA house" and rid it of enemies who wanted to stab him in the back, Ben Sulayem smiled: "It's not because they don't want to stab me, it's because there's no space left. "Truly numbers do not lie... they (the members) are happier, they can see that the money is invested back in. And in everything there is governance." Of the election, the former rally driver said he was prepared. "It's like putting your helmet and gloves back on. Really it reminds me of competitions, and competition is always good," he added. "We have such clear guidelines that now you cannot fiddle around with anything and that will never happen, not in my reign." Mayer, 59, is the son of former McLaren team principal Teddy Mayer and has previously served as a voluntary steward and FIA commission member and national association representative for the United States. He was also senior vice-president of racing operations at IndyCar/Champ Car from 1998-2003 and COO of the IMSA and American Le Mans sportscar Series from 2004-2009. REUTERS
