• Coinbase reveals that $240 million in corporate cash is still under the possession of the now-collapsed Silicon bank and that it expects to recover all the funds. 
• Ripple’s CEO says the network has some exposure to the bank but maintains that Ripple is in a safe place. 

In the wake of the ongoing commotion in the cryptocurrency and fintech market at large, it has been revealed that the leading cryptocurrency exchange Coinbase, holds a whopping $240 million in corporate cash in the now-collapsed Signature bank. Coinbase is now reassuring customers that it is working towards recovery of all of the funds.

The New York-based financial institution Signature Bank was a full-service commercial bank. With over 40 private client offices across New York, the bank also boasted of a massive real estate business and looked to secure cryptocurrency deposits very recently.

However, the bank was shut down by regulators on Sunday, in an attempt to curb any potential risks that could affect customers in the future. “We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority,” said the Federal Reserve, FDIC, and Treasury in a joint statement on Sunday.

Regulators further noted that depositors are assured of full access to their funds, and losses will not be borne by taxpayers. The bank’s shutdown comes not long after two leading banks; Silvergate bank and Silicon Valley bank a major hit last week.

On Monday, March 13th, Coinbase took to Twitter to explain to its customers that despite the turbulence in the traditional banking sector, the exchange would continue to carry out operations as usual. It also added that client phones are still safe and accessible, and that USDC conversions can be carried out today. Coinbase explained in a follow-up tweet;

All client cash at banks continues to be protected by FDIC pass-through insurance. Due to FDIC’s hold on Signature’s transactions, we’re currently facilitating all client cash transactions with other banking partners.

Does SVB hold $1 billion for Ripple? Brad Garlinghouse speaks

Brad Garlinghouse, the CEO of Ripple, has taken to Twitter to reveal that the report had some exposure to Silicon Valley Bank. One lawyer hinted that Ripple might have deposited $1 billion out of its $15 billion in the bank.

Although Garlinghouse did not name a specific amount, he disclosed that the bank was a Ripple banking partner, and held some of its cash balance. However, its business will proceed as usual, as the bank holds the majority of its USD with a larger network of bank partners. While Garlinghouse acknowledges that not much is known about the situation with SVB, he maintains that Ripple “remains in a strong financial position.