Ripple CEO Confirms Company’s Financial Stability Despite Exposure to Collapsed Silicon Valley Bank

CRYPTONEWSBYTES.COM Ripple-Executive-Welcomes-Govt-Regulation-and-Legal-Clarity-For-XRP-Coin-696x449 Ripple CEO Confirms Company's Financial Stability Despite Exposure to Collapsed Silicon Valley Bank

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.

Setting the record straight on SVB Qs:

Ripple had some exposure to SVB – it was a banking partner, and held some of our cash balance. Fortunately, 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.
— Brad Garlinghouse (@bgarlinghouse) March 12, 2023

“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

Obviously a lot is still unknown about what happens with SVB, and as is the case with many others, we hope to have more details soon – but rest assured, Ripple remains in a strong financial position.
— Brad Garlinghouse (@bgarlinghouse) March 12, 2023

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.