The product will give its enterprise clients the ability to access digital assets like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ethereum Classic (ETC), Bitcoin Cash (BCH), and, of course, Ripple (XRP) from a variety of sources, including exchanges, market makers, and over-the-counter (OTC) trading desks.
Ripple hopes to offer digital assets like non-fungible tokens (NFTs) in the near future.
Ripple’s Core Products
Ripple’s main products are RippleNet and an On-Demand Liquidity solution. RippleNet is a financial messaging service that is used by financial institutions to send money overseas and is touted as a rival to SWIFT.
Ripple’s On-Demand Liquidity solution allows financial institutions to use Ripple to send money across borders. With Liquidity Exchange, Ripple is targeting RippleNet clients that want to offer crypto-based services to their customers. Coinme, a US-based Bitcoin exchange, and ATM operator is the first business to use the service.
What is a Liquidity Exchange?
With interest in cryptocurrencies soaring to new heights, Ripple thought it was the perfect time to introduce a new product to the market – both Bitcoin and Ethereum reached all-time highs recently, and mainstream companies like Mastercard, JPMorgan, Goldman Sachs, and PayPal are providing crypto services.
A Liquidity Exchange is an aggregator for individual assets and various liquidity venues. Financial institutions can avail of lines of credit through Ripple to avoid having to part with working capital to pre-fund accounts. That said, the product is not mentioned as using Ripple – Ripple is one of the many available digital assets, as mentioned earlier.
Financial institutions can purchase digital assets like BTC and ETH using fiat. Trades will be region-specific, such as US Dollars in the United States and Pound Sterling in the United Kingdom. The Ripple team is planning on introducing staking and yield farming capabilities soon.
In essence, Liquidity Exchange will allow Ripple to be a one-stop destination for efficient and easy liquidity management. Financial institutions will be able to use Ripple’s services to send money overseas, with or without cryptocurrency, in a cheap, quick, secure, and transparent manner, as well as buy, sell, and store crypto assets.
It is safe to say that Ripple’s latest product is a fascinating proposition for market makers, brokerages, crypto exchanges, and of course, financial institutions.