Even if exchanges don't (on paper) loan on their capital, they still must have their USD somewhere, and that bank will surely be lending it out.
These exchanges are so big that a run on them would cause a run on the institutions they bank with, so you'd still get a liquidity squeeze somewhere, even with everyone acting with the best intentions.
And given recent history it's hard to know which exchanges haven't been loaning out their capital.
These exchanges are so big that a run on them would cause a run on the institutions they bank with, so you'd still get a liquidity squeeze somewhere, even with everyone acting with the best intentions.
And given recent history it's hard to know which exchanges haven't been loaning out their capital.