According to the Ripple Chief Executive Officer, FTX’s XRP indebtedness to the cross-border payment is not consequential to Ripple’s business.
Per a recent fireside chat on CNBC’s Tech Transformers at Davos, Brad Garlinghouse stated that Ripple had leased $10 million worth of XRP to the once-thriving cryptocurrency trading firm FTX Trading Limited.
Notably, the San Francisco-based crypto solutions company, as part of its business, often leases varying amounts of the XRP digital token meant for sales to several market makers. As shown in Ripple’s report for the 3rd Quarter of 2022, a total of 91.1 million XRP were marked as outstanding leases.
In light of Sam-Bankman Fried’s alleged corruption and ongoing court case, coupled with the crash of the FTX exchange in November, Ripple CEO Brad Garlinghouse is skeptical about FTX’s repayment of the $10M in XRP.
But Ripple intends to leverage the ongoing bankruptcy process to recover all or some portions of the leased XRP to the now-bankrupt cryptocurrency centralized marketplace.
He said, “we did have some exposure to FTX. I think we have publicly shared before – there’s around just over $10 million of XRP we had leased to FTX that they use for various things on FTX. I’m hopeful that through the bankruptcy process, we get some or all of it back but uh it’s not too consequential to the business.”
Speaking on the impact of the company’s exposure to FTX, Garlinghouse stated the $10 million worth of XRP represented about 1% of Ripple’s liquid assets. Hence, their regular business is not adversely affected by FTX’s indebtedness.
“I would rather not lose that money. And I’m hopeful that through the bankruptcy process, we get some or all of it back, but it’s not too consequential to the business,” the Ripple CEO remarked.
Meanwhile, the Wednesday disclosure from Garlinghouse was questioned by some players in the industry. Linda P. Jones wrote, “Brad said they “leased” over $10 million of XRP to FTX. I don’t remember Brad Garlinghouse or Ripple saying they “leased” XRP to anyone before.”
Brad said they "leased" over $10 million of XRP to FTX. I don't remember #BradGarlinghouse or #Ripple saying they "leased" XRP to anyone before, do you @digitalassetbuy or @DigPerspectives? https://t.co/yIrmwD57KF
— Linda P. Jones (@LindaPJones) January 18, 2023
It bears mentioning that Ripple had earlier indicated an interest in acquiring FTX assets but there has been no update regarding such a deal from Brad Garlinghouse.