Allgemein

: Ripple CEO Assures Investors Despite SVB Collapse

  • Silicon Valley Bank Collapse – Ripple CEO Brad Garlinghouse has assured investors that the company is in a strong financial position despite SVB collapse.
  • Crypto Firms Affected – Several top banks, including Silvergate, Silicon Valley, and Signature bank have shut down operations tying many firms‘ funds in their vaults.
  • Ripple’s Financial Position – Garlinghouse stated that Ripple is doing enough to sustain normal operations on the network with ample cash reserves held with other bank partners.

Silicon Valley Bank Collapse

The Silicon Valley Bank (SVB) recently collapsed, leading to major disruptions for many crypto firms as some of their funds were tied up in the bank’s vaults. Top crypto companies such as Coinbase, Paxos, Celsius, and Circle were affected due to their exposure to some of these banks. The ripple CEO Brad Garlinghouse has however reassured investors that the company is in a strong financial position despite this collapse.

Crypto Firms Affected

Several top banks including Silvergate, Silicon Valley, and Signature bank have shut down operations tying many firms‘ funds in their vaults. As a result of this crash, many crypto assets traded in the red last week adding to investor worries. Companies such as Coinbase, Paxos, Celsius and Circle were significantly affected due to their exposure to some of these banks.

Ripple’s Financial Position

In order to allay investor fears about the safety of their funds ,Garlinghouse stated that Ripple was doing enough to sustain normal operations on its network with ample cash reserves held with other bank partners .He added that taxpayers and users of Ripple would not need to pay for any losses incurred due to the Silicon Valley Bank collapse as The Federal Reserve had committed $25 billion towards ensuring regular financial institution functioning in light of the ongoing crisis in the crypto market .

Ripple Lawsuit With SEC

The lawsuit between Ripple and The Securities & Exchange Commission (SEC ) over XRP’s nature is still ongoing although Garlinghouse noted that it should end by June 2021. If there is no resolution by then ,the district court will either make a self-ruling or put it on trial before a jury .

Conclusion

In conclusion ,the Silicon Valley Bank collapse had serious repercussions for many cryptocurrency firms however The federal reserve intervention along with assurances from Garlinghouse have helped allay investor fears about safety of their funds being held by ripple .