Usa city Elizabeth, county Warren county Warren Usa city Elizabeth, county Warren county Warren

Is The Federal Home Loans Bank System Carrying Out a Stealth Rescue of the 2 Biggest Crypto Banks?

Reading now: 594
cryptonews.com

Signature Bank and Silvergate, two of the biggest crypto banks, have received billions in loans from the Federal Home Loan Banks, a system originally designed to support housing finance and community investment.According to a Saturday report from The Wall Street Journal, Signature Bank received nearly $10 billion in loans from its local home-loan bank in the last quarter of 2022 while Silvergate received at least $3.6 billion.Signature's loans are more than double its previous highest sum in several years, while 2022 marked the first year for Silvergate to tap home-loan banks, the report said.

The Federal Home Loan Banks are 11 US government-sponsored banks that provide loans to institutions. Founded during the Great Depression, the system has $1.1 trillion in assets and over 6,500 members and was originally designed to support housing finance and community investment.

While FHLBs providing loans to other financial institutions is nothing out of the norm, some market participants have warned that lending to crypto-exposed banks could lead to the crypto contagion spreading to traditional finance companies too.

Senator Elizabeth Warren, who has been a vocal critic of the crypto industry, has voiced concern regarding the growing relationship between crypto-exposed banks and TradFi companies.

Read more on cryptonews.com
The website financemag.cash is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News

DMCA