Brad Garlinghouse confirmed that Silicon Valley Bank’s (SVB) failure will not impact its operations.
Ripple is a San Francisco headquartered fintech company, which uses XRP ledger (XRPL) technology & its native token XRP to provide global payment services for small & big companies. Since Dec 2020, This company has been under a legal hurdle with the United States Securities and Exchange Commission (SEC) over the nature of the XRP token & its financial services.
On 13 March 2023, Brad Garlinghouse, CEO of Ripple, took to Twitter to inform his followers about the company’s relationship with Silicon Valley Bank (SVB).
Garlinghouse said that Ripple has many banking partners and SVB is one of them. He explained that SVB holds only a small amount of its cash reserves, so Ripple will not face any big problem.
Further, Garlinghouse said that the failure behind the SVB services is still a mystery for us and we are hoping the detailed information will come to the public soon.
“A lot is still unknown about what happens with SVB, and as is the case with many others, we hope to have more details soon,” Ripple CEO said.
In the last, Ripple CEO slammed the traditional financial system and said that banks are failing to run 24×7×365 but in the crypto sector it is happening.
Silicon Valley Bank’s downfall
Just 3 days ago, Silicon Valley Bank (SVB) announced its struggling phase, and that news further resulted in very big negative news about its depositors.
USDC issuer Circle faced very big pressure in the crypto sector, as USDC stablecoin once plunged by approximately 10% from the pegged value but now the situation changed to a better level, just after the announcement by the US financial authorities to compensate the SVB depositors against the loss.
Read also: Bank of London wants to acquire crypto-friendly Bank SVB’s UK subsidiary