![](https://procoinnews.com/wp-content/uploads/2022/04/41043730505_a6bf2f627d_b-1200x630.jpg)
Ripple CEO Confirms Company Is Unaffected By SVB Collapse
• March 17, 2023 3:52 pm • CommentsAs the collapse of Silicon Valley Bank has affect most of the crypto industry, Ripple CEO Brad Garlinghouse recently made a public statement where he said that the SVB collapse does not disrupt Ripple’s daily operations.
Garlinghouse reveals that Ripple holds most of its cash with a very broad network of bank partners so any exposure that the company would have had with SVB would only be a small percentage.
It has not been revealed how much capital the company had with SVB, but the amount does not matter anymore given that the government had stepped in to protect all uninsured deposits at SVB.
Any deposits that the company had with SVB would have been available this past Monday.
However, some are more concerned now about the general state of the economy given that the SVB collapse could trigger a larger banking crisis that could affect crypto and other markets.
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
CoinTelegraph reports:
Ripple chief technology officer David Schwartz had promised on March 11 that the company would release a statement on its Ripple exposure “shortly,” although it is not clear that the Garlinghouse tweet was what he had in mind.
Hours later, the Federal Reserve announced it had established a funding program of $25 billion to assist banks with liquidity during times of financial stress.
In another announcement, the Federal Reserve said that all depositors of Silicon Valley Bank would have access to all of their money starting Monday, March 13.
“No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” it added.
Schwartz commented on March 10, “I still don’t understand how a run on a bank can cause it to become insolvent.If the bank was solvent before, that means its assets exceed its obligations. […] They probably would have become solvent against [sic] as their 10 year treasuries matured. But they didn’t get that opportunity due to a run.“
So far, Ripple has continued to experience record growth for both the business and the customers that utilize its products despite the all the incidents that happened in the past year.
The diverse risk management of the company had prevented it from being affected by external events such as the SEC lawsuit and the SVB collapse.
Garlinghouse had previously also made comments that not much would be effected even if Ripple did lose the case against the SEC given that most of the growth happens outside of the US.
With that being said, it is looking likely that Ripple will win against the SEC and there is a chance that the case will be taken all the way up to the Supreme Court.
Based on past data, cases that are taken to the Supreme Court usually results in the SEC losing.
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.
— Brad Garlinghouse (@bgarlinghouse) March 12, 2023
CoinDesk concludes:
Ripple is the latest crypto company to comment on its connections to Silicon Valley Bank, which failed Friday after a run on deposits forced regulators to put the FDIC in control of its remaining assets.
Amid fear that large depositors may not be made whole, federal regulators are said to be considering measures that would seek to prevent the second-largest bank failure in U.S. history from kicking off a broader crisis.
In the meantime, parts of the startup and tech community that relied on Silicon Valley Bank (including CoinDesk) are looking for short-term solutions to day-to-day problems, like making payroll.
“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 said in the tweet.
Garlinghouse: Some of Ripple’s Cash Is at SVB, but Firm’‘Remains in a Strong Financial Position’#Ripple #XRP #FinTech #SVB #SVBCollapse #SiliconValleyBank #SVBCrash https://t.co/MWtb0gm0JF
— Siamak Masnavi (@siamakmasnavi) March 12, 2023
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.