Brad Garlinghouse, CEO of Ripple Labs, reveals that the company has a part of funds in Silicon Valley Bank. This announcement was made through his Tweet on Sunday. The bank’s closure on Friday has led many crypto companies to reveal their exposure to the bank.
Ripple Labs is a crypto solution provider that builds the Ripple payment protocol, and XRP is the world’s sixth-biggest cryptocurrency as per the market cap and the native token of Ripple.
Silicon Valley Bank is a California commercial bank that was one of the best banks in the United States. The news regarding the collapse of this well-known bank set off a disruption in global markets, including crypto markets. As per the reports, the regulators seized the bank due to its inability to meet withdrawal demands from depositors.
Despite the largest bank failure, Garlinghouse, through his tweet, assured its users and investors that the collapse would not affect their daily business and the company would remain in a strong financial state.
He further added that, fortunately, the company holds a majority of its funds in a broader network of banks. However, Garlinghouse did not mention how much money Ripple holds at the bank.
The Friday development has shocked the tech and financial industry worldwide. However, there is a lot more which is still unknown about what happened with SVB, but the investors and partners of SVB expect their funds to recover soon.
Meanwhile, some tech companies and startups that relied on Silicon Valley Bank have started looking for quick solutions to curb daily issues such as making payrolls.
