PartnershipUS
De Novo Erebor Bank Forms Correspondent Banking Partnership with Coastal Financial
Coastal Financial, based in Everett, Wash., added de novo Erebor Bank to its roster of correspondent banking partners. The relationship was disclosed in a slide in Coastal's latest earnings presentation, though the slide did not specify what services are being provided. Erebor opened in February after receiving speedy charter approval.
The bank is backed by PayPal co-founder Peter Thiel and Anduril founder Palmer Luckey and plans to deal in stablecoin. Erebor has drawn scrutiny after fundraising documents reported on last year touted close connections to regulators, including OCC head Jonathan Gould, claiming those ties would help secure a fast charter. The specific terms of the correspondent arrangement remain undisclosed.
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Implications
- Coastal Financial's partnership with a high-profile de novo bank reinforces its position as a key BaaS/correspondent banking infrastructure provider
- Tech-industry-backed de novo banks like Erebor leveraging established BaaS banks suggests a hybrid model where new charters still rely on partnership infrastructure
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