Silicon Valley Bank implosion: Ripple discloses exposure, Circle adds new banking partner
- According to Chief Executive Officer Brad Garlinghouse of Ripple Labs , some of its funds are held by Silicon Valley Bank.
- According to Ripple CEO, recent events have had no impact on the company’s operations.
- Circle selected Cross River Bank as its new partner after resolving the reserve risk situation.
- Beginning in March 2023, Cross River Bank will automatically mint and redeem USDC for its clients.
Another cryptocurrency player has announced exposure to Silicon Valley Bank (SVB), even though decisions about the bank’s fate are still being made. The latest to join the list is Ripple—a well-known blockchain-based digital payment network.
Some of the cash reserves held by Ripple, which is presently suing the Securities and Exchange Commission over the status of the cryptocurrency XRP, were kept at the now-defunct tech bank, according to Garlinghouse.
The Twitter conversation was reassuring for the anxious community members. The corporation previously held the majority of its cash in a network of banks and anticipates “NO interruption in our day-to-day activity.”
Garlinghouse also addressed the condition of the financial system, noting how vulnerable it is to rumours and how the present situation highlights its dysfunctional state.
Garlinghouse acknowledged that SVB’s future was “still uncertain” but expressed optimism that he would soon learn more about the circumstances. The CEO of Ripple also confirmed that the business’s financial situation was “strong.”
Amid economic turmoil, Circle released an announcement revealing new financial collaborators at the same time as USDC’s brief de-pegging ended.
The business confirmed that it had joined Cross River Bank as a new commercial banking partner for the objective of generating and redeeming USDC. Cross River Bank is well-known for offering banking services to businesses like Visa, Coinbase, and fintech startups.
In a latest revelation, the corporation stated that all of its reserves are secure.
The company’s funds with Silicon Valley Bank (SVB) are 100% safe, according to a message from Circle on March 13. SVB held around 8% of USDC’s total cash reserves, or $3.3 billion, and these funds will be accessible once the bank begins operations on Monday under the FDIC’s supervision.
For USDC redemptions, Circle also disclosed other “extended connections,” including one with BNY Mellon, which already offers custody services for the company’s reserves.