Despite the SVB collapse, the CEO of Ripple promises a strong financial position
March 13, 2023
On March 12, Brad Garlinghouse, the CEO of Ripple, posted on Twitter to talk about the company’s relationship with Silicon Valley Bank (SVB) and reassure his followers of Ripple’s stability.
Although Garlinghouse acknowledged that Ripple had exposure to SVB, he added that “we expect NO disruption to our day-to-day business” and “we already held a majority of our USD with a broader network of bank partners.”
He wanted to reassure users with his brief tweet thread. “Rest assured, Ripple remains in a strong financial position,” he tweeted.
Many Twitter users responding to the thread reacted positively to the statement:
“I never doubted you or @Ripple to have taken proper risk management,” one user wrote.
On March 11, David Schwartz, the chief technology officer of Ripple, stated that the company would issue a statement regarding its Ripple exposure “shortly,” though it is unclear if the Garlinghouse tweet was what he had in mind.
A few hours later, the Federal Reserve declared it had started a $25 billion funding program to help banks with liquidity during difficult financial times.
The Federal Reserve also announced that starting on Monday, March 13, all Silicon Valley Bank depositors will have access to all of their money.
“No losses related to Silicon Valley Bank’s resolution will be borne by the taxpayer,” it continued.
When compared to market trends, the price of Ripple’s XRP fell from a high of $0.40 on March 9 to a low of $0.35 on March 12 before rising again.
A Ripple executive referred to 2022 as the company’s “record year of business and customer growth” despite the fact that Ripple is currently involved in a legal dispute with the US Securities and Exchange Commission over the status of their XRP cryptocurrency. Garlinghouse predicted that the case would be resolved in June in a statement he made in January.