Ripple CEO Brad Garlinghouse took to Twitter on March 12 to discuss the company’s exposure to Silicon Valley Bank (SVB) and assured his followers of Ripple’s stability.
Ripple has exposure to SVB, Garlinghouse said, but “we expect no disruption to our day-to-day business, and already hold the majority of USD with a wider network of bank partners.”
The short tweet thread is meant to convince users. “Convinced, Ripple remains in a strong financial position,” he tweeted.
Set the record straight on SVB Qs:
Ripple has some exposure to SVB – it is a banking partner, and holds some of our cash balances. Fortunately, we expect no disruption to our day-to-day business, and have held the majority of USD with a wider network of bank partners.
– Brad Garlinghouse (@bgarlinghouse) March 12, 2023
Garlinghouse did not specify the amount of the company’s cash in SVB.
Many Twitter users who responded to the thread reacted positively to the statement:
“I have never doubted you or @Ripple have taken proper risk management,” wrote one user.
I never doubted you or @Ripple have taken proper risk management. Thank you for the statement.
— EarthAngel.XRP☀️ (@EarthAngel_Xrp) March 12, 2023
Ripple’s director of technology David Schwartz had promised on March 11 that the company will publish a statement in light of its Ripple “immediately,” although it is not clear if Garlinghouse’s tweet was in mind.
A few hours later, the Federal Reserve announced it had created a $25 billion funding program to help banks with liquidity during financial stress.
In another announcement, the Federal Reserve also noted that all depositors of Silicon Valley Bank will have access to all their money from March 13.
“None of the losses associated with the resolution of Silicon Valley Bank will be borne by taxpayers,” he added.
Related: Ripple survey: 97% of payment companies believe in the power of crypto
Schwartz comments on March 10, “I still don’t know how opening in the bank can cause bankruptcy. If the bank was solvent before, it means assets exceed liabilities. […] They will probably be solvent against him [sic] as 10-year matured treasuries. But he didn’t get that chance because he ran away.”
Ripple’s XRP (XRP) price dipped from a high of $0.40, rising against the market trend, on March 9 to $0.35 on March 12 before recovering.
Ripple is involved in a legal battle with the United States Securities and Exchange Commission over the status of the cryptocurrency XRP, but Ripple executives called 2022 “a year of record business and customer growth” for the company. Garlinghouse said in January that he expected to see the case resolved in June.