San Francisco-based blockchain company Ripple will launch a product called the “Ripple Liquidity Hub.” The service would allow enterprises to source digital assets from the broader cryptocurrency market.
According to the official announcement, the Ripple Liquidity Hub is essentially a platform built for the enterprise to buy, sell and hold digital assets at optimized prices across a range of venues. The initiative, which is set to go live by early 2022, will utilize smart order routing to find digital assets at the best prices from market makers, exchanges, and over-the-counter [OTC] desks.
The hub in question also aims to address some specific pain points of enterprise customers, avoiding long and resource-heavy integrations with the help of a streamlined API. As opposed to other offerings, the liquidity service will work towards getting rid of pre-funding requirements to free up working capital.
More Details on Ripple’s new Liquidity service
Initially, the Ripple Liquidity Hub aims to give business customers access to the major cryptocurrencies such as Bitcoin [BTC], Ethereum [ETH], Litecoin [LTC], Ethereum Classic [ETC], XRP, and Bitcoin Cash [BCH]. It is also important to note that the availability of the assets will vary by geography. Over time, the company plans to expand its offering and add more digital assets.
While emphasizing the need for seamless and efficient liquidity management, RippleNet GM Asheesh Birla stated,
“Crypto and financial institutions are embedded in our DNA. So, it makes perfect sense that as they prepare for a crypto-first world, our customers would want access to the same trusted one-stop shop for buying, selling, and holding crypto assets that have powered our extensive work with the financial institution.”
The fintech firm also announced Coinme as its first partner for the alpha version of the product. For the uninitiated, Coinme happens to be the first licensed Bitcoin ATM company with thousands of locations across the United States.
According to Birla, Ripple Liquidity Hub’s infrastructure is already in order owing to the growth with regards to the firm’s RippleNet and On-Demand Liquidity [ODL] products. Integrating more crypto-assets, on the other hand, was in response to meet the rising demand.
Delving deeper into DeFi
Ripple has ambitious plans in the burgeoning decentralized finance [DeFi] sector. Despite being embroiled in a battle with the Securities and Exchange Commission, Ripple is gearing up to provide features such as support for staking and yield generating functions in addition to exploring avenues for liquidity generation from decentralized exchanges [DEXs].
The latest news comes after Ripple announced support for wrapped XRP [wXRP] on the Ethereum network which will allow holders of the asset to interact with various decentralized protocols.