In recent news, Ripple has revealed its exposure to the Silicon Valley Bank, following a similar move by USDC issuer Circle. Ripple CEO, Brad Garlinghouse, confirmed that the company had held cash balances in the Silicon Valley Bank as its banking partner, but did not disclose the amount held.
Despite uncertainty surrounding the future of the bank, Garlinghouse assured investors that Ripple’s day-to-day business operations have not been impacted by the bank’s collapse. He also highlighted the systemic issues in the current financial system, such as wires not being available 24/7/365, and the impact of rumours on financial stability.
Circle, on the other hand, has been hit hard by the bank’s collapse, with its USDC stablecoin losing its peg last week. The company revealed that it held $3.3 billion in funds in the bank and initiated transfers on Thursday, but the transfer has not been processed as of Friday.
Nonetheless, Circle hopes the transfers will be processed by Monday, with the FDIC policy allowing transfers initiated before the bank’s receivership. USDC is still the second-largest stablecoin in the market, with a market cap of over $39 billion.