Silvergate received $4.3 billion advance from San Francisco Federal Home Loan Bank late last year

Encryption-friendly bank Silvergate received a $4.3 billion advance from the San Francisco Federal Home Loan Bank (FHLB) late last year, avoiding further runs on deposits, and now Silvergate holds about $4.6 billion in cash, most of which comes from FHLB advances. Silvergate pledged government-backed securities to secure FHLB advances, a form of advance that places few restrictions on how money on the bank's balance sheet can be used, according to preliminary fourth-quarter financials. "FHLB's payments to members are secured by high-quality collateral that meets statutory and regulatory requirements," an FHLB spokesperson said. Foresight News previously reported that Silvergate processed $8.1 billion in run-on withdrawals after a 68% plunge in cryptocurrency-related deposits in the fourth quarter following the FTX debacle and selling assets at a loss.