Crypto fintech firm Ripple has announced plans to launch a crypto trading marketplace called Liquidity Hub to offer crypto trading services to enterprise clients.
Single API For Multiple Liquidity Pools
In a public statement published on Tuesday, Team Ripple announced its plans to launch the Ripple Liquidity Hub, which will introduce new channels for enterprises to leverage digital assets from the broader crypto markets. At its core, it will act as a crypto liquidity platform that will facilitate the industry shift to crypto. The product will enable enterprise clients to access cryptocurrencies from global exchanges, market makers, and over-the-counter (OTC) platforms.
The team explained that the same crypto sourcing technology had supported Ripple’s On-Demand Liquidity (ODL) product for nearly two years. But, as per RippleNet GM Asheesh Birla, the new financial product will address customer demands.
“We know full-well the need for easy and efficient liquidity management. Crypto and financial institutions are embedded in our DNA. So, it makes perfect sense that as they prepare for a crypto-first world, our customers would want access to the same trusted one-stop shop for buying, selling and holding crypto assets that has powered our own extensive work with financial institutions.”
Customer-Facing Liquidity Solutions
The Ripple Liquidity Hub will live up to its customer-facing goals by deploying smart order routing to find digital assets at optimized prices from different liquidity venues. Financial companies can use the solution to address customer pain points, like eliminating pre-funding requirements to unlock working capital. In addition, enterprises will benefit by generating new revenue streams as they offer their end customers the ability to buy, sell and hold digital assets.
The Ripple Liquidity Hub will initially support cryptos like BTC, ETH, LTC, ETC, BCH, and XRP, to facilitate interoperability across networks. Additional crypto assets and staking and yield-generating functionalities would be added in the future.
The product is said to be launching its alpha version in 2022, which will include Coinme (the first licensed BTC ATM in the US) as its first announced partner. Initially, Coinme, which has thousands of ATM locations spread across the country, will leverage the underlying technology platform of the Liquidity Hub and then go on to unlock additional functionality as it becomes possible.
SEC vs Ripple Continues
The new product is launching in the middle of Ripple’s ongoing lawsuit with the SEC. The financial watchdog has had its eye on Ripple for quite some time, claiming that XRP acts as a security and should belong under the SEC’s jurisdiction. However, legal proceedings have mostly been favorable towards Team Ripple, and industry experts believe that the company will emerge victorious from the lawsuit.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.