The Ripple Liquidity Hub for businesses was inaugurated on April 13 to bridge the distance between cryptocurrencies and fiat after a successful pilot last year.
In response to concerns regarding the exclusion of XRP, Ripple updated its blog post on the Liquidity Hub to provide additional information regarding the assets that are now available and their rationale.
According to the blog post, Liquidity Hub utilizes intelligent order routing to source a variety of digital assets at optimal prices across multiple liquidity venues, including market makers, exchanges, and OTC desks. These extensive liquidity pools from multiple providers ensure that users have access to USD to BTC, ETH, ETC, BCH, LTC, USDC, and USDT when needed. The blog post continues:
“XRP will be evaluated alongside other tokens for product support. We look forward to supporting XRP as regulatory clarity emerges in the United States.”
John E. Deaton, a proprietor of CryptoLaw and attorney for XRP holders, was unsurprised by the stated cause for XRP’s exclusion from Ripple’s Liquidity Hub. He had previously deduced that the cause was the Ripple SEC litigation.
He adds that the issue is not how Ripple perceives XRP, as it does not believe XRP to be a security as has been alleged, but rather how other companies, particularly U.S. publicly traded companies, perceive the risk.
The SEC filed suit against Ripple in December 2020, alleging that the $1.3 billion sale of XRP constituted an unregistered security offering. Both parties filed petitions for summary judgment last year, and the judge’s decision is presently awaited.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.