On April 13th, Ripple launched the Liquidity Hub, a groundbreaking product designed to ease businesses’ access to cryptocurrencies. The big shocker? XRP, an essential digital asset used in Ripple’s On-Demand Liquidity (ODL) for cross-border payments, was conspicuously absent from the launch.
Though the court has recently ruled that XRP is not a security, its exclusion from Ripple’s liquidity hub has led to an onslaught of questions from influential crypto personalities.
Why Exclude XRP?
Bill Morgan, the Australian Lawyer & Digital Asset enthusiast, raised a crucial question regarding why Ripple can’t add XRP to the Liquidity Hub. The question rings louder since XRP seems to have more legal certainty than coins like Litecoin, Bitcoin, Ethereum, and Bitcoin Cash. Ripple’s move drew attention to the legal complexities surrounding digital assets and their classifications.
The Ripple Effect on Other Coins
Jay V’s inquiry into Ripple’s potential impact on other listed digital assets such as Litecoin, Bitcoin, Ethereum, and Bitcoin Cash sparked further debates. Bill Morgan’s response underlined the vagueness of the Liquidity Hub’s details, while another crypto user emphasized the enterprise-focused nature of the Liquidity Hub, hinting at XRP’s security status.
Ripple did not leave the community hanging and mentioned in its blog post earlier that “XRP will be evaluated with other tokens for support within the product,”
The Liquidity Hub’s roots trace back to a successful pilot application last year. From sourcing various digital assets, including market makers, exchanges, and OTC desks, Ripple’s product aims to optimize prices through deep liquidity pools which cover various digital assets, ranging from USD to BTC, ETH, ETC, BCH, LTC, USDC, and USDT.
