The liquidity hub aims to offer a pool of liquidity to businesses in addition to Ripple’s popular cross-border payments service called on-demand liquidity.
Fintech firm Ripple has launched its liquidity solution for businesses to bridge the gap between crypto and fiat. Ripple liquidity hub was launched on April 13 after a successful pilot last year.
The service operates as a stand-alone solution in addition to Ripple’s popular cross-border payments service called on-demand liquidity (ODL). This makes it a global liquidity network offering its partners access to payout rails worldwide.
The liquidity hub has been developed from an enterprise point of view to offer digital assets from various market makers, including crypto exchanges and over-the-counter trading desks. When an enterprise partner requires liquidity, it can source it from these large pools of deep liquidity, including United States dollars, Bitcoin, Ether, Ethereum Classic, Bitcoin Cash and Litecoin.
Interestingly, the product launch finds no mention of XRP, the crypto token issued by Ripple. XRP has been central to most 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 its liquidity pairs could be attributed to the company’s ongoing court battle in the U.S. with the Securities and Exchange Commission.
Ripple claimed its liquidity solution would considerably reduce the cost of operations on high-volume transactions. This is done by optimizing cryptocurrency pricing and liquidity across asset pairs.
The liquidity hub eliminates the need to pre-finance capital positions to source liquidity or conduct transactions. The liquidity service reduces complicated multiplatform administration requirements by enabling organizations 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 has 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 several banks worldwide to provide cheap remittance services with the help of cryptocurrencies.