Main navigation

Here's Why XRP Is Not Included in Ripple's Liquidity Hub

Tue, 04/18/2023 - 08:53
article image
Alex Dovbnya
Ripple's top lawyer, Stuart Alderoty, recently took to Twitter to address questions surrounding absence of XRP from company's newest product, Liquidity Hub
Here's Why XRP Is Not Included in Ripple's Liquidity Hub
Cover image via www.freepik.com
Read U.TODAY on
Google News

Ripple's top lawyer, Stuart Alderoty, clarified on Twitter why the company's newest product, Liquidity Hub, does not incorporate XRP.

The Liquidity Hub is an enterprise-level product primarily for institutions and not retail customers. Alderoty stated that there is currently low liquidity for XRP in the United States, and Ripple is eager to support XRP in the Liquidity Hub when it can provide an improved customer experience.

Alderoty emphasized that the product team designed the Liquidity Hub to access various types of cryptocurrency liquidity and not just XRP.

The target customers for the platform, which are mostly U.S. institutions, seek access to a range of tokens such as Bitcoin (BTC), Ethereum (ETH) and stablecoins. Ripple aims to cater to these customer demands.

Related
Shiba Inu (SHIB) Charts Bullish Momentum, Here Are Likely Triggers
One of the main reasons XRP is not part of the Liquidity Hub is due to a lack of regulatory clarity in the United States, which is crucial for enterprise customers.

Ripple's ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) over whether XRP is a security or not has led to uncertainty about the token's regulatory status.

Alderoty also addressed comparisons between Ripple's On-Demand Liquidity (ODL) service and the Liquidity Hub. He stated that ODL has been using and will continue to use XRP. Sales of XRP, reported quarterly, are made to ODL customers for use in the product, which continues to thrive on a global scale.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.