Crypto Banks Borrow $13,600,000,000 From Federal Home Loan Banks To Meet Customer Withdrawals: Report

Crypto Banks Borrow $13,600,000,000 From Federal Home Loan Banks To Meet Customer Withdrawals: Report


Two crypto-friendly US banks have borrowed at least $13.6 billion from Federal Home Loan (FHL) Banks to deal with a tidal wave of customer withdrawals amid the digital asset bear market, according to a new report from the Wall Street Journal (WSJ).

The FHL Bank System was created by the Federal Home Loan Bank Act of 1932.

It’s a government-sponsored banking system designed to support mortgage lending and community investment.

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The Wall Street Journal reports that crypto-friendly Signature Bank borrowed $10 billion from its local FHLBank in the fourth quarter of 2022. That figure represents the largest FHL loan by any bank in the past three years.

Signature Bank’s deposits reportedly dropped from nearly $103 billion to less than $89 billion in 2022.

Additionally, Silvergate

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