• The Silicon Valley Bank collapse has caused several crypto firms to suffer losses.
• Ripple CEO Brad Garlinghouse assured investors that the company is in a strong financial position, with ample cash reserves with other bank partners.
• The Federal Reserve has committed $25 billion to support affected financial institutions, protecting taxpayers and users of Ripple from potential losses.
Silicon Valley Bank Collapse Affects Crypto Firms
The recent Silicon Valley Bank collapse has caused several crypto firms to suffer losses due to their exposure to some banks. Top firms such as Coinbase, Paxos, Celsius, and Circle have been affected as their funds were tied in the shuttered vaults. This led many crypto assets traded in the red last week.
Ripple Assures Investors Of Strong Financial Position
Ripple CEO Brad Garlinghouse has assured investors that the company is doing enough to sustain normal operations on the network. He stated that Ripple had ample cash reserves with other bank partners and the community can rest assured that their funds are safe and there will be no disruption in daily business. Furthermore, David Schwartz tweeted that Ripple would soon release a statement to address this issue.
Federal Reserve Commits $25 Billion To Support Affected Financial Institutions
In order to ensure regular functionality of financial institutions affected by this crisis, the Federal Reserve revealed it would commit about $25 billion of taxpayer money for protection from any losses incurred due to the Silicon Valley Bank collapse.
Ripple’s Lawsuit With The SEC Still Ongoing
Meanwhile, the Ripple lawsuit with the Securities and Exchange Commission (SEC) over its native coin XRP is still ongoing. However, Garlinghouse noted that it would soon end with June being the deadline for a verdict which may result in either a self-ruling or trial before a jury if not solved by then.
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