The Federal Home Loan Bank (FHLB) system is suddenly finding itself bailing out numerous cryptocurrency-friendly banks, such as Silvergate and Signature. Estimates suggest they received over $15 billion in advances from the network combined.

FHLBs were established in the wake of the great depression, designed to provide funds to any residential housing finance member, or to “any community financial system” for small businesses and farms. FHLBs don’t receive taxpayer funding, are privately owned, and don’t follow the majority of their initial guidelines.

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