Ripple CEO Brad Garlinghouse took to Twitter on March 12 to discuss the company’s exposure to Silicon Valley Bank (SVB) and reassure his followers about Ripple’s stability.
Ripple had exposure to SVB, Garlinghouse said, but “we don’t expect any disruption to our day-to-day business, and we already have the majority of our USD with a broader network of banking partners.”
His short tweet thread was intended to reassure users. “Rest assured Ripple remains in a strong financial position,” she tweeted.
Setting the record straight on SVB Qs:
Ripple had some exposure to SVB – it was a banking partner and had some of our cash balance. Fortunately, we do NOT expect interruptions to our daily business, and we already have the majority of our USD with a broader network of banking partners.
—Brad Garlinghouse (@bgarlinghouse) March 12, 2023
Garlinghouse did not specify how much cash the company had in SVB.
Many Twitter users who responded to the thread reacted positively to the statement:
“I never doubted that you or @Ripple would have taken proper risk management,” one user wrote.
I never doubted you or @Vibe have carried out adequate risk management. Thanks for the statement.
— EarthAngel.XRP☀️ (@EarthAngel_Xrp) March 12, 2023
Ripple CTO David Schwartz had promised on March 11 that the company would release a statement about its exposure to Ripple “shortly,” though it’s unclear if Garlinghouse’s tweet was what he had in mind.
Hours later, the Federal Reserve announced that it had established a $25 billion funding program to help banks with liquidity in times of financial stress.
In another announcement, the Federal Reserve also noted that all Silicon Valley Bank depositors will have access to all their money starting Monday, March 13.
“No loss associated with the Silicon Valley Bank resolution will be borne by the taxpayer,” it added.
Related: Ripple Survey: 97% Of Payment Firms Believe In The Power Of Cryptocurrencies
schwarz commented on March 10, “I still don’t understand how a run on a bank can make it insolvent. If the bank was solvent before, that means its assets exceed its liabilities. […] They probably would have become solvent against [sic] as its 10-year Treasury bonds matured. But they didn’t get that chance because of a leak.”
Ripple’s XRP (XRP) price fell from a high of $0.40, rising against market trends, on March 9 to a low of $0.35 on March 12 before recovering.
Ripple is engaged in a legal battle with the United States Securities and Exchange Commission over the status of its cryptocurrency XRP, but a Ripple executive called 2022 a “record year of business and customer growth” for the firm. Garlinghouse said in January that he expected to see the case resolved in June.
