Ripple CEO Brad Garlinghouse has confirmed that the collapse of Silicon Valley Bank (SVB), a banking partner that held some of Ripple’s cash balance, will not disrupt its day-to-day business. Despite SVB’s collapse, Ripple remains in a strong financial position, having held the majority of its USD with a broader network of bank partners. Garlinghouse expressed his frustration at the broken state of the financial system, citing the wire transfers’ non-24/7/365 availability and the fragility of moving money within a fragmented system.
SVB suffered a bank run and collapsed last week after revealing $1.8 billion in losses, primarily due to the sale of US bonds that lost much of their value due to the Fed’s aggressive rate hikes. The fallout extended to Signature Bank, a New York-based institution that closed its doors on Sunday after customers withdrew $10 billion worth of deposits on Friday. According to CNBC, Signature Bank’s collapse is the third largest bank failure in the country’s history.
“We expect NO disruption to our day-to-day business, and already held a majority of our USD w/ a broader network of bank partners,” As tweeted by Garlinghouse
In response to these events, the Federal Reserve and Treasury Department have announced the availability of up to $25 billion as loans for financial institutions to ease liquidity pressures and meet their depositors’ needs. Despite the ongoing fallout, Garlinghouse remains confident in Ripple’s financial position and its ability to navigate these challenging times.
Suggested Reading:
- Banking Crisis Rocks Crypto Industry, Driving US Firms to Seek Safe Haven in Switzerland and Beyond
- Coinbase pauses USDC to USD for the weekend – Puts investors in worry
- Binance has temporarily suspended auto-conversion of USDC to BUSD – Potentially due to Circle-Silicon Valley Bank exposure
- Circle’s USDC Stablecoin’s Cash Reserves at Failed Silicon Valley Bank
Image Pic
Related
- Binance Braces for Potential Fines from US Regulators
- SEC Cracks Down on Binance.US for Operating as Unregistered Securities Exchange: Will Cryptocurrency Survive Regulatory Onslaught?
- Federal Reserve Chairman Jerome Powell’s Bold Endorsement: Proper Regulation Could Unlock Stablecoins’ – Potential in Financial Sector
- Silvergate – Cryptocurrency-focused Bank is in a Pickle
- Hong Kong plans to make crypto purchase and trading legal for all of its citizens
- Crypto Industry is Under Siege by Regulators
- Empowering Crypto Investors: Binance Joins Forces with Law Enforcement in Powerful Anti-Scam Campaign
