Ripple CEO Calms Market Fear, Says “No Disruption” Due To SVB

In a bid to soothe crypto market fear over SVB’s failure, Ripple CEO Brad Garlinghouse has taken to Twitter to clarify the firm’s financial position in the aftermath of the event.

Ripple has some exposure to Silicon Valley Bank [SVB] as a banking partner in the form of a small cash balance, he tweeted.

The firm’s regular operations have not been affected by the bank’s failure, reassuring clients that the majority of its reserves are spread throughout a larger network of bank partners.

Although Garlinghouse did not specify the amount of cash the company had in SVB, he reiterated that the firm is in a strong financial position.

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.

Two days after authorities shut down Silicon Valley Bank in a collapse that left billions in savings unclaimed, state regulators on March 12th dissolved New York-based Signature Bank, the third-largest failure in US banking history.

As of now, the Federal Deposit Insurance Corporation [FDIC] took the reins of Signature, according to New York state’s Department of Financial Services.

Following the incident, the Federal Reserve set up a funding program of $25 billion to assist banks with liquidity during times of financial stress. 

The Federal Reserve also noted that all depositors of Silicon Valley Bank will have access to all of their money starting Monday, Mar. 13. 

Signature’s failure following Silicon Valley Bank’s last week shutdown was reminiscent of the collapse of Washington Mutual, during the 2008 financial crisis.

Signature along with Silvergate were the two main banks for crypto entities, while Silicon Valley Bank had a lot of crypto startups and VCs as customers.

Ripple CTO Says, Firm Would Come Out With Exposure Details Soon

The failure of the crypto banking trifecta has sent shockwaves, especially into the stablecoin market over the weekend.

Recently, Ripple chief technology officer David Schwartz informed that the firm would publish a statement on its Ripple exposure “shortly”.

At the time of writing this article, the price of the Ripple-backed token XRP is exchanging hands at $0.38, rising against the market tides by nearly 2% in the last 24 hours. The 6th ranked token has a market cap of over $18 billion.

Lipika Deka: Lipika is a crypto-journalist at TWJ. A graduate in economics and finance, she has a keen interest in the political and socio-economic facets of blockchain technology and the cryptocurrency industry.