Ryvyl stock gains after chair reassures company has no exposure to bankrupt crypto firms

Ryvyl Inc. ( NASDAQ: RVYL ) stock climbed as much as 6.6% in Tuesday premarket trading after Ben Errez, the company's chairman, reassured investors that it has zero exposure to cryptocurrency firms that have recently filed for bankruptcy, such as FTX and BlockFi . In a shareholder letter, Errez stressed that Ryvyl ( RVYL ) is not a crypto firm, and "the collapse of crypto exchanges only strengthens our position and validates the strategy we have taken." The company leverages blockchain security and U.S. dollar-pegged stablecoin technology to conduct payment transactions. Its coyni smart contract tokens are "held in a wallet on the platform and matched with one U.S. dollar held in a custodial account by a federally insured financial institution," he explained. Also, the dollars backing coyni don't link to investments or Treasury notes and aren't converted to cryptos. "All industry failures we have seen recently, in both stablecoin and crypto, occurred with ecosystems that did not utilize these safety measures, leading to severe market disruption," Errez said. Last week, (Dec. 9) Ryvyl got a non-compliance notice from Nasdaq.