As if the cryptocurrency company Ripple Labs didn’t have enough problems. They were embroiled in a lawsuit with the SEC, and now it appears they also have money in bankrupt Silicon Valley banks.
Silicon Valley Bank Ripple Client
Ripple Labs CEO Brad Garlinghouse confirmed yesterday that his company uses the services of the failed bank. But he said the company behind the cryptocurrency XRP “remains in a strong financial position.”
Setting records directly on SVB Qs:
Ripple has some contact with 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 already hold the majority of our dollars through a wider network of banking partners.
— Brad Garlinghouse (@bgarlinghouse) March 12, 2023
Garlinghouse said his Ripple, like many others in the tech industry, parks some of its reserves at Silicon Valley Bank. However, he did not say how much the money was or what percentage of their total coffers.
banks had to close
The FDIC, the U.S. government agency that oversees banks, has forced Silicon Valley Bank to relinquish control, it was announced Friday.
As a result, the bank had to close its doors, a failure that regulators are convinced could trigger a major crisis. Eventually, U.S. Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and FDIC Chairman Martin Grunberg issued statements saying they had guaranteed the bank’s clients’ money.
Markets Have No Confidence in XRP and Ripple
Since Ripple is one of those customers, this should put them at ease. But you know who isn’t happy with that? cryptocurrency market. The price of XRP is one of the few prices that fell today and (yet) recovered from last week.
The current Ripple price today, March 13, 2023 is 0.33122 EUR. In the past 24 hours, Ripple price has decreased by 2.18%, which is a decrease in value of 0.00722722 EUR. Most coins like Bitcoin, Ethereum are up 10% today.
The above was written this morning and is no longer up to date. XRP is now up 7%.
no effect on daily activities
Meanwhile, Garlinghouse said that nothing that happens at SVB will affect Ripple’s operational aspects.
“We do not anticipate disruption to our day-to-day operations, and we have committed the majority of our funding to our wider network of banking partners.”
Information source: compiled by 0x information from BTCDIRECT.Copyright belongs to the author Jerrymie Marcus, without permission, may not be reproduced