in a tweet On Sunday, Ripple Labs CEO Brad Garlinghouse (Brad Garlinghouse) confirmed that the company has “some exposure” to Silicon Valley Bank (SVB), but emphasized that Ripple’s “financial position remains strong.” Garlinghouse made it clear that SVB is Ripple’s banking partner and that the company keeps some of its cash in banks.
#ripple Despite SVB risks, CEO confirms financial health #SVB https://t.co/rYpEOkH5Ds
— Kyptos (@azcoinnews) March 13, 2023
However, he assured the public that Ripple does not foresee “disruption to day-to-day business” and that the company holds the majority of dollars through its wider network of banking partners.
The tweet was in response to concerns raised after reports of SVB’s exposure to hedge fund Archegos Capital, which suffered heavy losses in March. Despite Ripple’s banking relationship with SVB, Garlinghouse’s statement suggests that the company’s institutional exposure is not significant and that Ripple’s financial position remains secure.
Garlinghouse’s tweet also highlighted the broader problems facing the financial system, noting that “transmissions are still 24/7/365” and that “in a highly decentralized system, there are bumps in the flow of funds” that can lead to rumors and crashes. Many Twitter users responded positively to Garlinghouse’s statement, expressing their confidence in Ripple’s risk management practices.
Ripple’s CTO David Schwartz said promise The company will soon issue a statement on its exposure to SVB. However, it was unclear whether Garlinghouse’s tweet was the statement Schwartz was referring to.
Ripple’s XRP price fell with the market trend from a high of $0.4 on March 9 to a low of $0.35 on March 12 before recovering and trading at $0.366 at the time of writing.
XRP price chart | Source: Tradingview
All in all, while Ripple Labs has some ties to Silicon Valley Bank, CEO Brad Garlinghouse’s tweet on Sunday assured the public that Ripple’s financials remain strong and are not expected to disrupt its day-to-day operations. The tweet also highlighted broader problems facing the financial system, and received a positive response from many Twitter users.
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according to Kyptos