Ripple, the San Francisco-based blockchain company, has admitted that it was exposed to the bankrupt Silicon Valley Bank (SVB), but said it would not significantly impact its business operations.
Ripple, which was a client of SVB, revealed its exposure to the bank in a recent blog post. According to the post, Ripple had deposited funds with SVB as part of its banking operations. However, the company said the exposure was “negligible” and that it had already transferred the funds to a new bank.
“We had a negligible balance with Silicon Valley Bank as part of our banking operations. We have already transferred those funds to another bank, and there will be no impact on our operations,” the blog post reads.
Ripple’s CEO sought to be reassuring, saying the blockchain company remains “in a strong financial position.
We do not anticipate any disruption to our day-to-day operations, and we were already holding the majority of our USD in a wider network of partner banks, he justified.
Ripple’s statement comes as the crypto industry worries about the potential impact of bank failures on digital asset companies.
However, information released by Ripple indicates that the impact of SVB’s closure on the crypto-industry may be limited. Despite the exposure, the company does not anticipate any significant disruption to its business operations.
Ripple has recently been in the news due to its legal battle with the Securities and Exchange Commission (SEC) over the status of its XRP token. The company argued that XRP was not a security, while the SEC claimed that it was.
In conclusion, Ripple’s exposure to the failed Silicon Valley Bank appears to have been limited and without significant consequence. While concerns about the stability of the banking system persist, Ripple’s disclosures suggest that the impact on the crypto industry may be limited.