Ripple chief executive Brad Garlinghouse says his company remains financially robust despite its exposure to the now-collapsed Silicon Valley Bank (SVB).
Garlinghouse that SVB was a banking partner and held some of Ripple’s cash balance.
“Fortunately, we expect NO disruption to our day-to-day business, and already held a majority of our USD with a broader network of bank partners.
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.
It’s ironic that so much of what’s happening (as some companies scramble to make payroll) highlights how broken our financial systems still are – i.e. wires are still not 24/7/365, rumors lead to collapse and the frictions of moving money within a deeply fragmented system.”
SVB suffered a bank run and collapsed last week after it revealed $1.8 billion in losses, largely due to selling US bonds that lost much of their value due to the Fed’s aggressive rate hikes.
The fallout spread from SVB to New York-based institution Signature Bank, which closed its doors on Sunday after customers withdrew $10 billion worth of deposits on Friday. Signature’s collapse is the third biggest bank failure in the country’s history, according to CNBC.
Over the weekend, the Federal Reserve and Treasury Department announced they would make up to $25 billion available as loans for financial institutions to alleviate liquidity pressures and meet the needs of their depositors.
