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Silvergate bank had $13.3b of demand deposits that could be withdrawn in the span of seconds through the send-network and fed wire api transactions but only had $1.4b in cash on hand. -Caitlin Long

Meanwhile her bank Custodia would have 100% reserves but was rejected by regulators citing too much risk.

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Discussion

SatCap 2y ago

it’s simple - a full reserve bank will never be approved. It (and others like it) would drain the entire fractional reserve ponzi system dry. They do not refute that this, and it’s not the first full reserve bank to be denied for same exact reason.