- Ripple disclosed exposure to Silicon Valley Bank, but did not disclose how much cash the bank holds
- Ripple’s 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 bankrupt bank. And this time the company in the headlines is Ripple – a popular blockchain-based digital payment network. In a Twitter thread, CEO Brad Garlinghouse stated that the company was familiar with SBV.
Ripple’s business remained unaffected
Ripple’s CEO stated that the company had some cash balances in SBV because it was its banking partner. But he did not disclose the amount in the bank. Nevertheless, Garlinghouse assured that the bank’s collapse has not disrupted day-to-day operations. In addition, he stated that a “majority of our USD has a broader network of banking partners.”
In addition, 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 is ironic that so much of what is happening (as some companies rush to earn payroll) shows how broken our financial systems still are — that is, there are still no 24/7/365 cables, rumored 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 USDC issuer Circle – disclosed its exposure. However, unlike Ripple, the stablecoin issuer has been facing market devastation since the news broke. The stablecoin pegged to the US dollar lost its peg last week and is still struggling to peg again.
The company revealed it had $3.3 billion in funds in the bank. The official statement further stated that the transfer of these funds had started on Thursday, but had not been processed by Friday. Nevertheless, the company hopes to process the transfers on Monday. This is because Federal Deposit Insurance Corporation (FDIC) policies allow transfers initiated before the bank has gone into receivership.
According to CoinMarketCap, USDC was trading at $0.965 at the time of writing and had a market cap of over $39 billion. The stablecoin is still the second largest in the market, with Tether (USDT) commanding a large share of the stablecoin market share.