Ripple Labs has announced plans to launch “Liquidity Hub,” a crypto liquidity platform to accelerate the transition of financial institutions and customers into space, as well as allow them to offer cryptocurrency services.
Originally Ripple Liquidity Center, Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ethereum Classic (ETC), Bitcoin Cash (BCH) and XRP will support. In addition, the company specifically stated that the availability of these assets will vary depending on geographical location. Ripple will launch more crypto assets, including NFTs, in the future.
Global #crypto liquidity is able to support massive payments at scale – it’s the lifeblood of crypto.
Ripple Liquidity Hub will allow enterprises to source, trade, move and manage value from a variety of liquidity venues.
Coming 2022.#RippleSwellhttps://t.co/wxenpTfCIH pic.twitter.com/sMUb1kDXZZ
— Ripple (@Ripple) November 9, 2021
The new service will allow Ripple’s institutional clients to access cryptocurrencies from different providers in the broad crypto market. These will include exchanges, market makers and over-the-counter (OTC) trading desks, giving businesses access to “deep liquidity”. Businesses will also provide their customers with the ability to buy, sell and hold crypto assets at optimized prices via Smart Order Forwarding.
So what does the deal mean for Ripple?
The “turnkey solution,” as Ripple calls it, will avoid “long and resource-heavy integrations through a streamlined API.” It would also eliminate “pre-financing requirements to free up working capital”. In addition, financial institutions will benefit from new revenue streams thanks to the additional services they provide.
According to RippleNet General Manager Asheesh Birla, this crowdsourced technology is the foundation of Ripple’s On Demand Liquidty (ODL). Ripple’s ODL service has been in operation for about two years.
“Our clients want to have the same trusted one-stop access to buy, sell and hold crypto assets, which strengthens our extensive work with financial institutions.”
The service, which is expected to launch in 2022, is currently in preview and interested parties are advised to apply through a waiting list available on the Ripple website.
Ripple’s first partner for the alpha version of Liquidity Hub is Coinme, America’s first licensed Bitcoin ATM company. The company will use Ripple’s crowdsourcing technology and additional functionality of Liquidity Hub when it becomes available.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.