Ripple launches liquidity hub for businesses to bridge the crypto liquidity gap

Ripple launches liquidity hub for businesses to bridge the crypto liquidity gap

April 14, 2023

Fintech firm Ripple has launched its liquidity solution for businesses to bridge the gap between crypto and fiat. The liquidity solution called Ripple liquidity hub was launched on April 13 after a successful pilot last year.

The service operates as a stand-alone solution and as an addition to Ripple’s popular cross-border payments service called on-demand liquidity (ODL). This makes it a global liquidity network that offers its partners access to payout rails around the world.

The liquidity hub has been developed from an enterprise point of view with an aim to offer digital assets from a variety of market makers, including crypto exchanges, and over-the-counter trading desks. When an enterprise partner is in need of liquidity, they can source it from these large pools of deep liquidity including USD, Bitcoin (BTC), Ether (ETH), Ethereum Classic (ETC), Bitcoin Cash (BCH), and Litecoin (LTC).

Interestingly the product launch finds no mention of XRP, the crypto token issued by Ripple. XRP has been at the centre of most liquidity products and services offered by the fintech firm, especially cross-border liquidity services. Although, XRP was mentioned among digital assets in the company’s pilot phase.

The omitting of XRP from its liquidity pair could be attributed to the company’s ongoing court battle in the United States against the Securities regulator.

Ripple claimed its liquidity solution would reduce the cost of operations considerably on high-volume transactions. This is done by optimising cryptocurrency pricing and liquidity across asset pairs.

Related: New Ripple president says her job is to continue to scale amid crypto winter

Liquidity Hub eliminates the need to pre-finance capital positions in order to source liquidity or conduct transactions. The liquidity service reduces complicated multi-platform administration requirements by enabling organisations to access digital assets in a single place. The services also lock in optimum pricing for digital assets to protect companies from market instability and price swings.

Ripple had made a name for itself in the fintech world for offering various liquidity solutions and cross-border remittance services. Its popular ODL solution has onboarded a number of banks across the world to offer cheap remittance services with the help of cryptocurrencies.

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