Ripple business operations remain unaffected by the SVB collapse
Similar to other crypto networks Ripple is also making rounds in the news amidst the uncertain fate of Silicon Valley banks. The Ripple network disclosed that its business operations remain unaffected by the SVB collapse.
Ripple – one of the most popular blockchain networks – was also associated with the Silicon Valley bank. The bank crisis has left a huge impact on businesses and other networks. Ripple network also had a sum of cash held in the bank and must have been affected by the whole crisis.
The effect of collapse on the Ripple network
The crypto world and the majority of the investors are not taking this crisis quite well as it can leave them in a financial crisis. However, despite the ongoing tension, the CEO of Ripple Brad Garlinghouse clarified the network standing after the entire scenario via a Tweet.
Garlinghouse mentioned in the tweet that the network did have “had some exposure to SVB – it was a banking partner and held some of our cash balance. Fortunately, we expect NO disruption to our day-to-day business, and already held a majority of our USD w/ a broader network of bank partners.”. In addition, he said that the network relies on more than one bank partner.
He further added that nobody is aware of what will be the long-term consequences of what’s happening with the bank. However, the Ripple network expects to remain in a “strong financial position.”
Furthermore, he stated:
“It’s ironic that so much of what’s happening (as some companies scramble to make payroll) highlights how broken our financial systems still are – i.e. wires are still not 24/7/365, rumors lead to collapse and the frictions of moving money within a deeply fragmented system.”
Circle stablecoin finds itself in deep trouble
Days before the Ripple CEO put out its statement on being unaffected, Circle a USDC – stablecoin issuer – disclosed the damage their network went through. The circumstances are not the same for the Circle network like Ripple, as they are facing a huge market turmoil since the news surfaced.
Last week, the stablecoin, which is tied to the value of the US Dollar, lost its value and is currently facing difficulties in re-establishing its peg to the US Dollar.
The company recently disclosed that it had $3.3 billion in funds deposited in the bank. The company initiated the transfers on Thursday but it didn’t continue on Friday. The Federal Deposit Insurance Corporation (FDIC) is allowed to initiate any transfers made before the bank was placed in receivership.
CoinMarketCap indicated that USDC was being traded at $0.965 and had a market capitalization exceeding $39 billion. Although it is the second-largest stablecoin in the market yet teh=ther holds a significant portion of the market share currently.