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Saturday, April 1, 2023

Three Large Cryptocurrency Firms Acknowledge Link to SVB

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Amidst the volatility of the global markets for the bankruptcy of Silicon Valley Bank (SVB) With cryptocurrencies on the rise, Ripple CEO Brad Garlinghouse sought to reassure the firm’s investors and XRP token holders by acknowledging an exposure to the failing bank. The same was revealed by Coinbase and Paxos, although in all three cases they did not modify their activity.

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“Ripple had some exposure to SVB – it was a banking partner and held part of our cash balance. Fortunately, we don’t expect any disruption to our day-to-day business and we already have most of our dollars in a broader network of banking partners.”, he explained on his Twitter account.

Garlinghouse stressed that “a lot is still unknown about what happens with SVB” and has indicated that “Ripple continues to be in a strong financial position”. “It is ironic that much of what is happening highlights how broken our financial systems remain”he added.

Coinbase and Paxos, followed the same steps

Coinbase, for example, revealed that it had a “corporate cash balance” of approximately $240 million at Signature Bank. Despite this, the company announced that it “continues to operate normally” and that “all customer funds continue to be safe and accessible.”

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“All customer cash at banks continues to be protected by FDIC transfer insurance. Due to the FDIC withholding on Signature transactions, we are currently facilitating all customer cash transactions with other banking partners,” they explained from the ‘exchange’ led by Brian Armstrong.

For its part, the former issuer of Binance USD (BUSD) Paxos Trust acknowledged an exposure of $ 250 million at the closing of Signature, although it added that it had private insurance that covers the amount not covered by the standard FDIC insurance of u $250,000 dollars per depositor.

Source: Ambito

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