Erebor Bank: When Stablecoins Outlive the Silicon Bank’s Ghost

The Dragon’s Last Hoard

I used to think SVB was just bad luck—a mismatch between tech cash and 19th-century banking logic. But then I saw Erebor’s application to the OCC. Not a startup. Not a VC-backed venture. A monastery built for the post-SVB world: no loan-to-deposit ratio above 50%, no implicit guarantees, no chain liquidity crutches. Just cold, hard assets—USD-backed stablecoins, sitting like gold in Smaug’s cave.

The Math That Doesn’t Multiply

In traditional banks, \(100M deposits become \)500M loans through leverage. It’s alchemy—money breeding money. But stablecoins? One USDC is one dollar. No multiplier. No illusion. If Erebor holds \(3B in USDC reserves? That’s \)3B in actual USD—not borrowed credit, not future promises, not debt wrapped in blockchain dust.

The Bridge Isn’t Magic—It’s Discipline

Erebor doesn’t lend crypto like SVB lent bonds. It acts as a bridge: between Fed liquidity and chain resilience. Its only product? Settlement. No mortgages on Bitcoin. No toxic long-duration assets. The risk isn’t interest rate shocks—it’s existential loneliness: being too honest to play the old game.

The Real Collapse Is Coming Soon

What if Bitcoin drops 30%? What if USDC depegs? No FDIC here. No lender of last resort. Just code running on a server at 3AM—7 days a week—with no pause button. That’s not DeFi innovation—it’s Terra reborn in clean lines and dark blue gradients.

Still, We Build Anyway

I don’t believe in ‘banking’ anymore—I believe in holding. Erebor isn’t trying to replace SVB—it’s trying to outlive it. The dragon died—but the dwarves kept writing their ledger by hand.