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New Ripple Liquidity Hub Product Allows Financial Firms to Offer Crypto Services

UTC by Bhushan Akolkar · 3 min read
New Ripple Liquidity Hub Product Allows Financial Firms to Offer Crypto Services
Photo: Ripple

The new Ripple Liquidity Hub will allow financial players to offer services across multiple cryptocurrencies like BTC, ETH, LTC among others.

Ripple‘s ongoing battle with the US SEC hasn’t deterred the blockchain startup from pursuing new developments. On Tuesday, November 9, Ripple unveiled its new product Liquidity Hub which will allow financial firms to offer customers access to digital assets.

The latest development also comes at a time amid higher retail participation in the crypto space. Besides, financial service providers have been racing to bring these offerings to their customers.

New Ripple Liquidity Hub

Planned for the launch in 2022, the Ripple Liquidity Hub will specifically cater to enterprise customers. Clients will get access to cryptocurrencies from a range of sources like exchanges market-makes, and over-the-counter trading desks.

Initially, the clients will be able to offer trading only for a few select cryptocurrencies. This includes Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), XRP, Bitcoin Cash (BCH), and Ethereum Classic (ETC). In the future, Ripple is also planning to offer a trading facility for other digital assets like non-fungible tokens (NFTs).

Ripple said that it has already leveraged the Liquidity Hub for two years for its internal liquidity management. This was also a part of its on-demand liquidity product. Now, Ripple will make this product available to its global customers along with other financial institutions, fintechs, banks, and corporates willing to enter the crypto world. Speaking of this development, RippleNet GM Asheesh Birla said:

“We understand firsthand the need for easy and efficient liquidity management – and as such, we’ve received questions from our customers who are in need of solutions that can be a one stop shop to buy, sell and hold crypto assets. The combination of Ripple’s crypto DNA and long history working with financial institutions makes us uniquely positioned to address this problem for our customers as they prepare for a tokenized future.”

Ripple’s Product Expansion

Ever since its existence, Ripple has been bringing several products to the market catering to low-cost and instant cross-border transactions. The company uses its native crypto XRP as a bridge for speeding up international payments along with its on-demand liquidity product.

Ripple’s another blockchain-based payment solution is RippleNet. Global banks and financial institutions are already leveraging the RippleNnet platform to move money instant across borders. The RippleNet also competes with traditional SWIFT banking solutions.

The Liquidity Hub is Ripple’s first-of-its-kind offering wherein it will allow services for other cryptos apart from XRP. Besides, it will also help to compete with other financial giants like PayPal, VISA, Mastercard, and others, who have already announced bi developments in crypto.

Asheesh Birla, general manager of RippleNet, told that the Liqidity Hub will serve as a tool for aggregating different “liquidity ventures and  individual assets”. The first customer for the Ripple Liquidity Hub is crypto exchange Coinme. Ripple has also planned some line of credit to its financial partners via XRP. This will help them avoid pre-funded accounts for Liquidity Hub.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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