Ripple Labs, the company behind XRP, has introduced a business liquidity hub. This innovative solution enables businesses to access digital asset liquidity from a variety of crypto exchanges, market makers, and over-the-counter marketplaces globally.
The liquidity hub aims to seamlessly connect fiat systems and cryptocurrencies. Ripple announced the launch on April 14, following the successful pilot of the product last year.
Bridging the liquidity gap: Ripple’s integrated solution
The newly launched liquidity hub seeks to integrate solutions that help businesses access and manage liquidity across platforms. With this tool, corporations can optimize cryptocurrency liquidity and leverage a vast payout network to power payments, treasury operations, and other services.
Using advanced technology, the product sources the best rates for crypto assets, eliminating the need for pre-funded capital positions with multiple liquidity venues. This approach frees up capital for businesses, enabling them to manage their resources more efficiently.
Additionally, the liquidity hub operates 24/7, providing businesses with access to a wide range of global payout channels. This feature ensures flexibility and speed in managing digital asset transactions while allowing users to effectively track their funds.
Interestingly, XRP, the cryptocurrency issued by Ripple, is not mentioned in the product launch. XRP has been central to most liquidity products and services offered by the fintech firm, particularly in cross-border liquidity services. However, XRP was included among digital assets during the company’s pilot phase.
The absence of XRP from the liquidity pairs could be linked to Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission. The announcement states that the liquidity hub currently supports five cryptocurrencies: Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), Ethereum Classic (ETC), and Bitcoin Cash (BCH).
Members of the XRP community have raised questions regarding the asset’s omission. A prominent community member, Wrathof Kahneman, highlighted the standalone nature of the hub, while another member expressed disappointment at the less-than-expected connection to XRP. Prominent XRP community member Crypto Eri also noted the absence of XRP in the liquidity hub, pointing out that Ripple included BTC, LTC, ETH, ETC, and BCH, but not XRP.