Ripple discloses exposure to SVB; not caused business operations disruption
- Ripple revealed exposure to Silicon Valley Bank but did not disclose the amount of cash held by the bank
- Ripple CEO claims that the company’s operations remain unaffected by the recent developments
While the future of Silicon Valley Bank (SVB) is still being decided, another crypto player has declared exposure to the failed bank. And, this time around the firm in the headlines is Ripple – a popular blockchain-based digital payment network. In a Twitter thread, CEO Brad Garlinghouse stated that the company had exposure to SBV.
Ripple’s business unaffected
Ripple’s CEO stated that the firm had held some cash balances in SBV as it was its banking partner. But, he did not disclose the amount held in the bank. Nonetheless, Garlinghouse assured that the bank’s collapse has not caused any disruption to its day-to-day business operations. Additionally, he stated that a “majority of our USD w/ a broader network of bank partners.”
Furthermore, Garlinghouse accepted that SVB’s future was “still unknown” but hopes to get more details on the situation soon. Ripple’s head also assured that the company’s financial position was “strong”. He added,
“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.”
Circle caught in a bind
Notably, Ripple’s exposure to Silicon Valley Bank comes days after Circle – USDC issuer – disclosed its exposure. However, unlike Ripple, the stablecoin issuer has been facing the market’s havoc ever since the news broke out. The stablecoin pegged to US Dollar lost its peg last week and is still struggling to re-peg.
The company revealed that it held $3.3 billion in funds in the bank. Its official statement further stated that the transfer of these funds was initiated on Thursday but had not been processed as of Friday. Nonetheless, the company hopes the transfers to processed on Monday. This is because the Federal Deposit Insurance Corporation’s (FDIC) policy allows transfers initiated before the bank entered receivership.
According to CoinMarketCap, USDC was trading at $0.965 at press time and had a market cap of over $39 billion. The stablecoin is still the second-largest in the market, with Tether (USDT) talking up a large chunk of the stablecoin market share.