Brad Garlinghouse: "The collapse of Silicon Valley Bank did not affect the financial position of Ripple"

Ripple CEO Brad Garlinghouse assured that the situation with the Silicon Valley bank did not affect the stability of the company's financial position.

According to a tweet by Brad Garlinghouse, Ripple used the services of a bankrupt Silicon Valley bank, but this is not true. affected the day-to-day activities of the company, since most of the funds are held by other partner banks. Garlinghouse assured XRP holders that the company's financial stability is not in danger. At the same time, the Ripple boss did not specify how much money the company holds in Silicon Valley Bank.

“Everything that is happening now highlights how broken the current financial system is: money transfers still don’t work 24/7, rumors lead to collapse, and money flows circulate in deeply fragmented systems,” wrote Garlinghouse.

Setting the record directly on SVB Qs:

Ripple had some influence on SVB - it was a banking partner and had some of our cash reserves. Luckily, we don't expect ANY disruptions to our day to day operations and already have most of the US dollars with a wider network of banking partners.

— Brad Garlinghouse (@bgarlinghouse) March 12, 2023

Ripple CTO David Schwartz also tweeted about the collapse of Silicon Valley Bank. He expressed bewilderment about how an outflow of funds from the bank could lead to its bankruptcy. If the bank was previously solvent, assets exceed liabilities.

“Mass withdrawals don’t change the amount of assets and liabilities, so why can liabilities now exceed assets?” Schwartz wonders.

I still don't understand how running a bank can cause it to become insolvent. If the bank used to be solvent, then the assets exceed the liabilities. Mileage doesn't change either assets or liabilities, so how can liabilities now exceed assets?

— David "JoelKatz" Schwartz (@JoelKatz) March 11, 2023

Ripple is currently in a legal battle with the US Securities and Exchange Commission (SEC) over the status of the XRP coin, and Garlinghouse hopes the proceedings will be completed this summer.