Ripple CEO Brad Garlinghouse clarified the company’s position on its exposure to Silicon Valley Bank (SVB), confirming that his company had some exposure to SVB as a banking partner
Ripple CEO Brad Garlinghouse took to Twitter to clarify the company’s position regarding its exposure to SVB.
Garlinghouse explained that Ripple had some exposure to SVB as a banking partner and held some of its cash balance.
However, he reassured investors that there would be no disruption to the company’s day-to-day business as they already held the majority of their USD with a broader network of bank partners.
Garlinghouse also touched on the state of the financial system, saying that the current situation highlighted how broken the financial systems still are since they are highly susceptible to rumors.
The Ripple CEO hopes to have more details soon and assures investors that Ripple remains in a strong financial position.
The response from the community was mixed, with some thanking Garlinghouse for the update and expressing their admiration for Ripple’s resilience in the face of adversity.
However, some community members were concerned about the amount of money Ripple had held with SVB, with one user describing it as a “significant amount of money.”
As reported by U.Today, the price of Bitcoin spiked to an intraday high of $21,605 on the Bitstamp exchange amid reports that US officials are considering protecting all deposits at Silicon Valley Bank, following its sudden collapse, which has led to panic in the technology industry.