Ripple CEO affirms strong financial position despite exposure to Silicon Valley Bank

By 0xGorki 03/13/23 1:12 AM

In a tweet on Sunday, Ripple Labs CEO Brad Garlinghouse confirmed that the company had “some exposure” to Silicon Valley Bank (SVB), but emphasized that Ripple “remains in a strong financial position.” Garlinghouse clarified that SVB was a banking partner of Ripple’s and that the company held some of its cash balance with the bank.

However, he assured the public that Ripple expected “NO disruption to our day-to-day business” and that the company had already held the majority of its USD with a broader network of bank partners.

Setting the record straight on SVB Qs:

Ripple had some exposure to SVB – it was a banking partner, and held some of our cash balance. Fortunately, we expect NO disruption to our day-to-day business, and already held a majority of our USD w/ a broader network of bank partners.

— Brad Garlinghouse (@bgarlinghouse) March 12, 2023

The tweet was in response to concerns that arose after reports of Silicon Valley Bank’s exposure to Archegos Capital, a hedge fund that suffered massive losses in March. While Ripple had a banking relationship with SVB, Garlinghouse’s statement indicates that the company’s exposure to the bank was limited and that Ripple’s financial position remains secure.

Garlinghouse’s tweet also highlighted the broader issues facing the financial system, noting that “wires are still not 24/7/365” and that the “frictions of moving money within a deeply fragmented system” can lead to rumors and collapse. Many Twitter users responded positively to Garlinghouse’s statement, expressing their confidence in Ripple’s risk management practices.

Ripple’s Chief Technology Officer, David Schwartz, had promised that the company would release a statement on its exposure to SVB “shortly.” However, it is not clear if Garlinghouse’s tweet was the statement that Schwartz had in mind.

Ripple will issue a statement shortly. I can’t say anything until they do.

— David “JoelKatz” Schwartz (@JoelKatz) March 12, 2023

Ripple’s XRP price dipped from a high of $0.40 on March 9, rising against market trends, to a low of $0.35 on March 12 before recovering and trading at $0.375 at the time of writing.

15-minute TradingView chart showing XRP/USDT pair

In summary, while Ripple Labs had some exposure to Silicon Valley Bank, CEO Brad Garlinghouse’s tweet on Sunday reassured the public that Ripple remains in a strong financial position and does not expect any disruption to its day-to-day business. The tweet also highlighted broader issues facing the financial system and was met with positive responses from many Twitter users.