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FHLB Lends Billions of Dollars to Crypto Banks

Katie Lin

Summary: The United States Federal Home Loan Banks System (FHLB) is lending billions of dollars to banking giants Signature Bank and Silvergate, according to a report from The Wall Street Journal. The banking consortium reportedly lent nearly $10 billion to Signature Bank, and $3.6 billion to Silvergate after the bank experienced significant outflows of deposits, in ...

The United States Federal Home Loan Banks System (FHLB) is lending billions of dollars to banking giants Signature Bank and Silvergate, according to a report from The Wall Street Journal.

The banking consortium reportedly lent nearly $10 billion to Signature Bank, and $3.6 billion to Silvergate after the bank experienced significant outflows of deposits, in the last quarter of 2022.

While traditional finance has remained largely unaffected by the crypto contagion, FHLB’s loans to crypto banks could increase the risk of reversing this, the report noted.

Author: Katie Lin

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