To this effect, Ripple decided to move into the DeFi space through the launch of a new product ‘Ripple Liquidity Hub’.
Ripple designed this Liquidity Hub to enable all enterprises to source various tokenized assets from it. It will also allow unrestricted access to crypto assets from various venues across the globe. This article explains more on why Ripple came up with this idea and when the new offering will go live. You will also see how Ripple plans to move into DeFi Space.
Ripple’s Liquidity Hub to go Live in 2022
Ripple has made known to the general public their intention to launch its new product in 2022. The blockchain firm based in San Francisco made this announcement on Tuesday, November 9 despite its ongoing SEC lawsuit. Ripple’s general manager Asheesh Birla in a speech with Decrypt revealed the reason behind the new offering. According to Birla, Ripple developed the Liquidity hub in response to customers’ demand for a means of accessing other crypto assets.
However, the blockchain firm since its inception a few years back had focused on its native coin XRP. But with this new product launch, it would be easier for users to buy and sell other cryptos via its platform. Presently, Ripple Liquidity Hub will support cryptos like Ethereum (ETH), Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum Classic (ETC), and XRP. The availability of these cryptos will be determined by the geographical location of the user.
More so, the liquidity hub service is designed to leverage the existing on-demand Liquidity platform. This platform permits various financial institutions like banks to perform cross-border payments with XRP. Ripple had promised to add more to their crypto list with time. They also plan to integrate more features like staking and yield farming in the future.
About Ripple and Liquidity Hub
There has been increased adoption of Decentralized Finance and the emergence of new projects in the past years. Each project seeks to offer a unique solution to an existing challenge, improve on or introduce new features. However, Ripple with its new offer- Liquidity Hub is not left out.
The blockchain firm is moving into the DeFi space to enable customers to purchase crypto from their preferred trading platform through the Ripple network. It intends to give them access to other crypto exchanges over the counter (OTC) desks and various crypto sellers. Hence, giving XRP a wider range of access, attraction, and adoption.
However, since its legal battle with SEC, Ripple had lost over 70% of its worth. SEC had earlier probed Ripple and its link with XRP, referring to the crypto offering as an unregistered security offering. But Ripple maintained its stand stating that XRP isn’t a security. Since this year, XRP has gradually recovered from its loss from a value of $0.28 on January 15.
The current price of XRP at the time of writing is $1.19.
In a bid to solve the customer’s challenge of not accessing other cryptos via the Ripple platform, the blockchain firm decided to launch a new product. This product, Ripple Liquidity Hub will support smart order routing and turn-key integration to source cryptos at optimized rates. It will enable customers to buy, hold and sell various crypto assets easily.
Although this new offer had been in existence for like two years now, the firm had been utilizing it for managing their internal liquidity. Ripple internal liquidity management is part of the firm’s On-demand Liquidity product (ODL). It powers transactions in millions amounting to billions of dollars. This new product offer is a welcome development as it will help to improve XRP visibility.
Remember, digital currencies are very volatile, invest only what you can afford to lose.