- Ripple launched the Liquidity Hub to bridge the gap between cryptocurrencies and real money.
- The community reacted with criticism when XRP
was not included in the Liquidity Hub.
Ripple has clarified why XRP was not included in the Liquidity Hub it launched recently.
Ripple Did Not Add XRP to the Liquidity Hub!
After a successful pilot application last year, Ripple launched the Liquidity Hub on April 13 to bridge the gap between cryptocurrencies and real money for businesses.
Interestingly, XRP was not mentioned during the product launch, which surprised and angered the community because XRP was among the digital assets mentioned during the pilot phase of the product. On-Demand Liquidity (ODL), which is commonly used for cross-border payments, uses XRP; therefore, the exclusion of XRP from the Liquidity Hub was a big surprise for the XRP community.
In response to concerns about XRP’s exclusion, Ripple updated its blog post about the Liquidity Hub to provide more details about which assets are available and why. As stated in the blog post, the Liquidity Hub sources various digital assets from multiple liquidity providers using smart order routing to provide optimized prices, including market makers, exchanges, and OTC desks.
These deep liquidity pools sourced from multiple providers enable the provision of liquidity when users need it, ranging from USD to BTC, ETH, ETC, BCH, LTC, USDC, and USDT. Ripple also added the following statement;
“XRP will be evaluated with other tokens for support within the product. We look forward to supporting XRP when regulatory clarity is achieved in the US.”
Ripple Lawyer Makes Statement
John E. Deaton, founder of CryptoLaw and lawyer for XRP holders, stated that he was not surprised by the reason given for Ripple’s removal of XRP from the Liquidity Hub. He had previously concluded that the reason was the Ripple v SEC case.
I’ve seen a lot of comments, many of them angry about @Ripple not listing #XRP w/Liquidity Hub after selling billions. Many are pissed I think b/c they were vocal against @coinbase for suspending #XRP. I wasn’t surprised and that’s why I said it’s no doubt about the case. https://t.co/u9TsPfKRIQ
— John E Deaton (@JohnEDeaton1) April 14, 2023
He added that Ripple’s perception of XRP was not related to how it perceived XRP because it believed that XRP was not a security, but rather related to other companies, especially public companies in the US, and the risk they perceived.
In December 2020, the SEC filed a lawsuit against Ripple, alleging that the $1.3 billion XRP sale constituted an unregistered securities offering. Last year, both sides applied for a summary judgment, and the judge’s decision is currently pending.
