After a successful pilot last year, the Ripple Liquidity Hub for businesses was launched on April 13 to bridge the gap between cryptocurrencies and fiat.
Interestingly, XRP was not mentioned in the product launch, which drew surprise and criticism from the community because it was among the digital assets mentioned in the product’s pilot phase.
Updated explanation by Ripple on Liquidity Hub. XRP will be evaluated with other tokens once it has regulatory clarity. @JohnEDeaton1 was correct, and in my video I guessed the use case would be added after law suit. pic.twitter.com/JfEGfdNhAR
— 🌸Crypto Eri 220k+ Followers (Beware of Imposters) (@sentosumosaba) April 14, 2023
On-Demand Liquidity (ODL), which is largely used for cross-border payments, leverages XRP; hence, the asset’s omission from the Liquidity Hub came as a big surprise to the XRP community.
In response to concerns over the exclusion of XRP, Ripple updated its blog post on the Liquidity Hub with further details about the assets that are now available and why.
As stated in the blog post, Liquidity Hub leverages smart order routing to source a variety of digital assets at optimized prices across multiple liquidity venues, including market makers, exchanges and OTC desks. These deep liquidity pools from multiple providers ensure liquidity is sourced when users require it — from USD to BTC, ETH, ETC, BCH, LTC, USDC and USDT.
The blog post further adds: “XRP will be evaluated along with other tokens for support within the product. We look forward to supporting XRP as it receives regulatory clarity in the U.S.”
It is about U.S. companies and risks they perceive — Deaton
CryptoLaw founder and XRP holders’ attorney, John E. Deaton, expressed little surprise at the reason cited for the omission of XRP from Ripple’s Liquidity Hub. He had earlier inferred the reason as being the Ripple SEC lawsuit.
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 adds that it is not about how Ripple perceives XRP, as it believes XRP is not a security as alleged, but about other companies, especially U.S. publicly traded companies, and the risk they perceive.
In December 2020, the SEC filed its lawsuit against Ripple, alleging the $1.3 billion sale of XRP constituted an unregistered security offering. Last year, both parties filed motions for summary judgment, and the judge’s ruling is currently awaited.