We study banks' participation in reciprocal deposit networks and their potential financial stability implications. Our results show that banks increasingly participate in these networks, with reciprocal deposit growth positively correlated with lagged uninsured deposits. Using daily Fedwire data, we provide evidence that reciprocal deposits improved overall—not just deposit—funding stability during the 2023 Silicon Valley Bank (SVB) crisis. Using unique multi-network membership data, we identify key drivers of network participation. Our novel data and findings advance understanding of how banks use network-based arrangements to manage funding risk, with implications for both deposit insurance policy and network design.