Ripple Launches Enterprise Liquidity Hub to Bridge Crypto Liquidity Gap
Fintech firm Ripple has launched its corporate liquidity solution to bridge the gap between crypto and fiat. The Ripple liquidity hub was launched on April 13 after a successful pilot last year.
The service works as a stand-alone solution in addition to Ripple’s popular cross-border payment service called on-demand liquidity (ODL). This makes it a global liquidity network that offers its partners access to payout rails worldwide.
The liquidity hub has been developed from a corporate point of view to offer digital assets from various market players, including crypto exchanges and over-the-counter trading desks. When a corporate partner needs liquidity, it can draw it from these large pools of deep liquidity, including US dollars, Bitcoin (BTC), Ether (ETH), Ethereum Classic (ETC), Bitcoin Cash (BCH), and Litecoin (LTC).
Interestingly, the product launch finds no mention of XRP (XRP), the crypto token issued by Ripple. XRP has been central to most of the liquidity products and services the fintech firm offers, especially cross-border liquidity services. However, XRP was mentioned among digital assets in the company’s pilot phase.
The omission of XRP from the liquidity pairs can be attributed to the company’s ongoing legal battle in the US with the Securities and Exchange Commission.
Ripple claimed that its liquidity solution would significantly reduce operating costs on high-volume transactions. This is done by optimizing cryptocurrency pricing and liquidity across asset pairs.
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The liquidity hub eliminates the need to pre-fund capital positions to obtain liquidity or execute transactions. The liquidity service reduces complex multi-platform management requirements by enabling organizations to access digital assets in a single location. The services also lock in optimal pricing for digital assets to protect companies from market volatility and price fluctuations.
Ripple has made a name for itself in the fintech world for offering various liquidity solutions and cross-border remittance services. The popular ODL solution has brought in several banks worldwide to offer cheap remittance services using cryptocurrencies.
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