Ripple CEO Brad Garlinghouse on Sunday disclosed exposure to Silicon Valley Bank. While Garlinghouse declined to say how much capital was held at the fallen bank, he assured investors that the company remains strong.
Ripple Had ‘Some Exposure’ To SVB
Ripple chief Brad Garlinghouse has clarified the firm’s position regarding its exposure to Silicon Valley Bank, which was recently closed by the California Department of Financial Protection.
Garlinghouse took to Twitter on March 12 to reveal that Ripple had “some exposure” to SVB as a banking partner as the now-defunct tech lender held some of its cash reserves. He failed to specify the exact amount of cash the blockchain payments company had in SVB. Nevertheless, “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,” Garlinghouse assured.
Ripple is just the latest crypto-focused company to speak on its ties to SVB. The California Department of Financial Protection and Innovation closed the bank Friday afternoon, appointing the Federal Deposit Insurance Corporation (FDIC) to take over operations. SVB’s abrupt collapse raised fears among small enterprises, venture capitalists, and other depositors with capital stuck in limbo.
Garlinghouse hopes to get more details about the situation soon and reassures investors of Ripple’s “strong financial position”.
The statement from the Ripple boss drew mixed responses from the crypto community, with some applauding Ripple for taking proper risk management and others expressing concern about the money held in SVB.
Ripple is embroiled in a courtroom drama with the United States Securities and Exchange Commission over the legal status of their XRP token, but a Ripple senior exec described 2022 as a “record year of business and customer growth” for the firm. Garlinghouse opined in January that he believes the lawsuit could be concluded by June.
Meanwhile, bitcoin soared above $23,300 on Monday after Federal regulators said all depositors of Silicon Valley Bank will have full access to their money beginning today after confirming a successful transfer of deposits to a new bridge bank.