Ripple CEO Brad Garlinghouse took to Twitter on March 12 to discuss the company’s exposure to Silicon Valley Bank and reassure his followers of Ripple’s stability.
Garlinghouse said Ripple had approached SVB, but “we do not anticipate disruption to our day-to-day operations and already hold the majority of our dollars through a broader network of banking partners.” His short tweet threads are designed to reassure users. "Rest assured Ripple's financials remain strong," he tweeted. To set records directly on SVB Qs:
Ripple has some exposure to SVB - it's a banking partner that holds part of our cash balance. Fortunately, we do not anticipate disruption to our day-to-day operations, and we already hold the majority of our dollars through a wider network of banking partners.
Garlinghouse did not specify how much cash the company has in SVB. Many Twitter users who responded to the post reacted positively to the announcement. "I never doubted that you or @Ripple took proper risk management," wrote one user. I never doubted that you or @Ripple took proper risk management. Thank you for your statement.
Ripple CTO David Schwartz had promised on March 11 that the company would issue a statement about its Ripple revelations “soon,” though it’s unclear whether Garlinghouse’s tweet was his intention.
Hours later, the Fed announced it had created a $25 billion funding program to help banks secure liquidity during times of financial stress. In a separate statement, the Fed said all depositors at Silicon Valley Bank will have access to all of their money starting Monday, March 13.
"Any losses related to the SVB resolution will be borne by taxpayers," it added. Schwartz commented on March 10: “I still don’t understand how a run on the bank made it insolvent. If the bank was previously solvent, it meant that its assets exceeded its liabilities. With their 10-year bonds maturing, they could become [sic] solvent. But because of the run, they didn't get that chance."
Ripple's XRP price, It fell from a counter-trend high of $0.40 on March 9 to a low of $0.35 on March 12 before recovering.
Ripple is in a legal battle with the U.S. Securities and Exchange Commission over the status of its XRP cryptocurrency, but a Ripple executive called 2022 a "record year for business and customer growth" for the company. Garlinghouse said in January he expected the case to be resolved by June.
