In the wake of the Silicon Valley Bank collapse, Ripple CEO Brad Garlinghouse has assured investors that the company is in a strong financial position.
There have been several cases of shuttered banks this month, which has affected many crypto firms. Some top banks, including Silvergate, Silicon Valley, and Signature bank, have shut down operations tying many firms’ funds in their vaults.
Top crypto firms such as Coinbase, Paxos, Celsius, and Circle have been affected due to their exposure to some banks. Also, many crypto assets traded in the red last week due to the bank’s crashes.
Ripple Holds Strong Financial Position Despite SVB Collapse
In a Twitter post, Garlinghouse stated that while the loss of SVB was a blow, Ripple is doing enough to sustain normal operations on the network. He added that the company had ample cash reserves with other bank partners. So, the community can rest assured that their funds are safe and there will be no disruption in the daily business.
Although Garlinghouse failed to disclose the amount held in the bank, the reactions from users show that they’re pleased with his statement. Aside from the encouraging statement from Garlinghouse, David Schwartz tweeted that Ripple would soon release a statement to address the issue.
Furthermore, the Federal Reserve revealed that it would commit about $25 billion to ensure the regular functionality of financial institutions affected by the ongoing crisis in the crypto market. As a result, the taxpayers and users of Ripple won’t need to pay for any losses incurred due to the Silicon Valley Bank collapse.
Outlook Of Ripple And Its Native Token
Meanwhile, the Ripple lawsuit with the Securities and Exchange Commission (SEC) over the nature of its native coin, XRP, is still ongoing. However, Garlinghouse noted that the case would soon end, with June being the deadline for the verdict.
If the case remains unsettled after the targeted period, the district court in New York will either make a self-ruling or put it on trial before the jury. While that stands, the company recorded a good performance over the past months, particularly in 2022.
According to a Ripple executive, 2022 had been a record-breaking year for the company regarding its customer growth and business operations. In the meantime, XRP trades at $0.3622 at the time of writing. Its price change over the past 24 hours stands at -0.43%.
Featured image from Pixabay and chart from Tradingview.com