Ripple CEO Brad Garlinghouse has confirmed that the company had deposits in SVB, but that most of the funds had been withdrawn.
He has reassured that Ripple is in a solid financial position and that the current situation serves to illustrate the flaws of the traditional financial system.
He has mentioned the lack of 24/7 transfers, the spread of rumors leading to market instability, and the discrepancies present when it comes to the movement of funds. On March 10, the California Department of Financial Protection and Innovation closed SVB due to “lack of liquidity and insolvency” and the Federal Deposit Insurance Corporation took over control.
The bank managed a total of $209 billion, with deposits of $175.4 billion. USDC, DAI, and FRAX, three of the most popular stablecoins, were affected, losing their peg to the US dollar.
