Ripple Intends To Launch A Cryptocurrency Liquidity Platform

Ripple (a blockchain-based protocol for payments) disclosed intentions regarding the launch of a venue for financial organizations to acquire digital assets out of the huge crypto market as a means of expediting an evolution in the sector. Ripple mentioned via a blog post published on Tuesday that although there are several exchanges backing liquidity via the customer trading of virtual assets, a proper crypto-first space will be obscure without enterprise contribution. As similar to the impossibility of ubiquity regarding electric vehicles without big automakers such as Volvo and Ford, mainstream crypto needs the involvement of financial institutions.

The platform named Ripple Liquidity Hub has the intention to utilize SOR (smart order routing) for obtaining virtual assets at adjusted prices from the OTC desks, exchanges, and market makers. Enterprises would utilize it to provide their clients with the opportunity to purchase, hold, and sell digital assets around different platforms. The product will sidestep long integration via a streamlined app programming structure and remove pre-funding necessities to ensure the availability of working capital, Ripple added. For two years, a crypto sourcing mechanism has been utilized by RippleNet, as per Asheesh Birla (the General Manager of RippleNet), and presently intends to release a consumer-facing version of its product during 2022.

Although the launch of the product, due to its licensing, is pending, the earliest licensed BTC (Bitcoin) ATM firm across the U.S. “Coinme” will be the initial to use the essential tech platform of Liquidity Hub. Birla compared the respective product to that of an aggregator operating on several liquidity platforms as well as individual assets, parallel to the procedure of Google Flights regarding the flights and airlines.

Birla revealed that there is in advance a considerable demand regarding this product type across the market following the substantial year availed by Ripple. Banks, SMEs, and financial organizations acknowledge the chance to incorporate crypto into the business thereof however they do not have the necessary expertise in the crypto sector and require support providing their consumers with the capability to conveniently purchase, hold and sell crypto assets.

Apart from supporting XRP (the digital asset of Ripple), the latest product will offer support for BTC (Bitcoin), ETH (Ethereum), LTC (Litecoin), ETC (ethereum classic), and BCH (bitcoin cash). Some additional assets are also intended by the management team of the asset to be included in this list over time.