According to Foresight News, crypto-friendly bank Silvergate received a $4.3 billion advance from the Federal Home Loan Bank of San Francisco (FHLB) at the end of last year, avoiding further runs on deposits. Now Silvergate holds about $4.6 billion in cash, most of which comes from FHLB advances. According to preliminary financial data for the fourth quarter, Silvergate pledged government-backed securities to obtain FHLB advances, and this form of advance has few restrictions on how funds on the bank's balance sheet can be used. An FHLB spokesperson said that "FHLB's payments to members are secured by high-quality collateral that meets regulatory and supervisory requirements."
Foresight News previously reported that Silvergate processed $8.1 billion in run withdrawals as cryptocurrency-related deposits plunged 68% in the fourth quarter following the FTX collapse and sold assets at a loss.