Ripple CEO Brad Garlinghouse has taken to Twitter to address the company’s exposure to Silicon Valley Bank (SVB) and reassure followers of Ripple’s financial stability. The tweet thread aimed to calm concerns, with Garlinghouse stating that Ripple expected “NO disruption to our day-to-day business” and that the company already held the majority of its USD with other bank partners. Garlinghouse did not specify how much cash Ripple had in SVB, but assured Twitter users that “Ripple remains in a strong financial position.”
Positive Twitter Reaction
Many Twitter users reacted positively to the statement, with one user writing, “I never doubted you or @Ripple to have taken proper risk management.” Ripple Chief Technology Officer David Schwartz had previously stated that the company would release a statement on its exposure to Ripple shortly, although it is not clear if Garlinghouse’s tweet was the statement Schwartz had referred to.
Federal Reserve’s Funding Program
Hours after Garlinghouse’s tweet, the Federal Reserve announced a funding program of $25 billion to assist banks with liquidity during times of financial stress. The Federal Reserve also announced that all depositors of SVB would have access to all their money starting Monday, March 13, and that no losses associated with the resolution of SVB would be borne by taxpayers.
Ripple’s Legal Battle with SEC
Ripple is currently embroiled in a legal battle with the United States Securities and Exchange Commission over the status of their XRP cryptocurrency. Despite this, a Ripple executive has called 2022 a “record year of business and customer growth” for the company. Garlinghouse has stated that he expects the case to be resolved in June.
XRP’s Price Dips
The price of Ripple’s XRP dipped from a high of $0.40, rising against market trends, on March 9 to a low of $0.35 on March 12 before recovering.
Conclusion
While Ripple’s exposure to SVB may have caused concern, Garlinghouse’s tweet aimed to reassure users of the company’s financial stability. The Federal Reserve’s funding program and guarantee of depositor access to funds should further alleviate concerns. Despite the legal battle with the SEC, Ripple remains optimistic about future business growth.
As Ripple seeks to regain investor confidence amidst its ongoing legal woes, some traders may be looking to take advantage of potential market movements. Online trading platforms such as Crypto Nation Pro and Tesla Coin offer users the ability to invest in various financial instruments, including cryptocurrencies like XRP. By utilizing the platforms’ intuitive interfaces and advanced trading tools, investors can potentially capitalize on Ripple’s future growth prospects while mitigating risk through effective risk management strategies!
