The FDIC has said that insured depositors would gain access to their assets by Monday while it would pay out advanced dividends to uninsured depositors.
Ripple Chief Technology Officer David Schwartz has said the blockchain payments firm would issue an official statement in response to inquiries over whether it has exposure to the collapsed Silicon Valley Bank.
The Ripple executive tweeted today, noting that he could only speak on the issue once the firm released an official statement.
“We’re going to issue a statement,” Schwartz wrote. “I can’t really say anything until we do that officially.”
We're going to issue a statement. I can't really say anything until we do that officially.
— David "JoelKatz" Schwartz (@JoelKatz) March 11, 2023
As highlighted by Schwartz in an earlier tweet, Forbes ranked the bank as the 20th-best bank in the United States less than a month ago. It served as a major lender to the tech industry domiciled in Silicon Valley.
Forbes ranked SVB the 20th best bank in America less than a month ago. https://t.co/aTWvxabtXU pic.twitter.com/UmeyUP0qCV
— David "JoelKatz" Schwartz (@JoelKatz) March 10, 2023
SVB held about $209 billion in assets at the end of last year, per the Federal Deposit Insurance Corporation (FDIC). However, earlier this week, it experienced a bank run that forced regulators to step in by Friday.
For context, it bears mentioning that Ripple is a tech company also domiciled in Silicon Valley. Consequently, it is unsurprising that investors could be concerned about potential exposure, as companies in the region favored SVB.
Circle, issuers of the USD Coin (USDC) stablecoin today confirmed a $3.3 billion exposure to the collapsed bank. The ensuing panic has caused the stablecoin to de-peg as USDC holders are dumping their holdings en masse in fear of potential insolvency. Circle has said it is now looking to regulators for guidance on the way forward.
The FDIC has said that insured depositors would gain access to their assets by Monday while it would pay out advanced dividends to uninsured depositors.
As reported today, Twitter boss Elon Musk has revealed an interest in acquiring the bank to enable Twitter to offer digital banking services. Notably, it would align with his vision of turning the microblogging platform into a behemoth in the financial sector.
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