Ripple’s CEO Confirms Keeping ‘Some’ Funds in Silicon Valley Bank
Ripple’s Brad Garlinghouse revealed that the project has been exposed to some risks at Silicon Valley Bank (SVB), but the company does not expect any disruption to its day-to-day operations.
XRP issuer Ripple has hinted that it is holding some of its cash balance in the embattled Silicon Valley bank, the 16th largest US bank that went into receivership last week.
In a March 12 tweet, Ripple CEO Brad Garlinghouse reiterated that despite the company’s exposure to SVB, it does not expect any disruption to its day-to-day operations, as a large portion of its USD balance is distributed across its network of banking partners. Garlinghouse did not say how much Ripple funds are currently held in SVB.
While it lasted, SVB was catering to the financial needs of technology companies and innovators in the United States and around the world. The California-based bank has invested heavily in long-term US government bonds, which have lost value due to the Federal Reserve’s rapid interest rate hike. SVB was forced to sell more than $21 billion worth of its bonds at a significant loss to shore up liquidity, spooking investors.
SVB’s plan to raise $1.75 billion, announced last week, unnerved its clients and investors, culminating in a bank run that made it the most prominent US bank to fail since the 2008 recession.
So far, many crypto-focused and venture capital firms, including USDC Issuance, Pantera Capital, a16z, Paradigm, and others, have suffered significant losses due to the collapse of SVB.
While Ripple, whose court case remains with the SEC, has assured its community there is no cause for concern, scandalous bankruptcies in the Web3 space in recent months, including the collapse of FTX and subsequent infections, have proven that centralized crypto platforms are not to be trusted. completely.
At the time of writing, XRP price is down 0.34%, hovering around $0.35, according to CoinMarketCap.
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