In a short tweet thread with no specifics, Garlinghouse said the SVB situation would not disrupt daily operations.
Ripple CEO Brad Garlinghouse took to Twitter on March 12 to discuss the company’s disclosure to Silicon Valley Bank and reassured his followers about the stability of Ripple.
Ripple has exposure to SVB, Garlinghouse said, but “we expect no interruption in our day-to-day operations, and hold most of our USD in our network of banking partners.”
His short tweet was meant to reassure users. “Rest assured, Ripple is still in a strong financial position,” he tweeted.
Garlinghouse did not say how much the company owns in SVB. Many Twitter users who responded to the thread also reacted positively to the statement.
“I never doubted that you or @Ripple took real risk management,” one user wrote. Ripple’s chief technology officer, David Schwartz, promised on March 11 that the company would release a statement about its exposure to Ripple “soon”, although it is unclear whether Garlinghouse’s tweet is what he said. mind.
A few hours later, the Federal Reserve announced that it had launched a $25 billion financial program to help banks with liquidity during the financial crisis. In a separate announcement, the Federal Reserve said that all depositors at Silicon Valley Bank will receive all their money starting Monday, March 13.
He added, “No loss related to Silicon Valley Bank’s decision will be borne by the taxpayer. Schwartz said on March 10, “I don’t understand how a run on the bank can be a waste. If the bank is first solvent, it means that its assets exceed its liabilities. […] They probably would have been creditworthy against [sic] their 10-year wealth. But they don’t have that opportunity because of race. “
The price of Ripple XRP ($0.37) fell from a high of $ 0.40, rising against the market trend, on March 9 to a low of $ 0.35 on March 12 before recovering. Ripple is involved in a legal battle with the United States Securities and Exchange Commission over the status of their XRP cryptocurrency, but Ripple’s CEO has called 2022 “a record year of business and customer growth” for the company. Garlinghouse said in January that he expected the case to be settled in June.
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