2023-03-11 14:49:30
Is there any impact on Ripple from collapsed SVBRipple Chief Technology Officer David Schwartz said the company will release an official statement in response to inquiries about whether it had anything to do with the collapsed Silicon Valley Bank.
Ripple's CEO tweeted today that he would not be able to speak on the matter until after the firm releases an official statement.
"We're going to issue a statement," Schwartz wrote. "I can't say anything until we make it official."
As Schwartz pointed out in an earlier tweet, less than a month ago Forbes ranked the bank as the 20th best bank in the United States. It served as a major lender to the technology industry.
According to the Federal Deposit Insurance Corporation (FDIC), SVB had about $209 billion in assets at the end of last year. Earlier this week, however, it ran into problems that forced regulators to step in.
For context, it's worth mentioning that Ripple is a technology company also registered in Silicon Valley. Consequently, it is not surprising that investors might be concerned about the potential risk as companies in that region have favored SVB.
Circle, stable USD Coin (USDC) issuers today confirmed $3.3 billion in exposure to the collapsed bank. The ensuing panic has led to Stablecoin canceling its peg as USDC holders dump their holdings en masse for fear of potential insolvency. Circle said it is now seeking guidance from regulators on how to proceed.
The FDIC said insured depositors will have access to their assets by Monday, while uninsured depositors will be paid an advance dividend.
As reported today, Twitter CEO Elon Musk said he was interested in acquiring the bank so that Twitter could offer digital banking services. Notably, this would be in line with his vision of turning the microblogging platform into a behemoth in the financial sector.
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