Why Ripple Excluded XRP from Liquidity Hub: Insights from a Crypto Lawyer
Ripple's Liquidity Hub Controversy
Ripple's recent launch of its Liquidity Hub, a crypto liquidity API solution designed for on-demand liquidity (ODL) clients, has ignited controversy. Notably, the exclusion of XRP from the list of supported assets, which includes BTC, ETH, and LTC, has puzzled the crypto community.
Community Reaction and Concerns
The debate gained traction when a crypto influencer highlighted a previous statement from Ripple's General Manager. In 2021, it was mentioned that XRP would be part of the Liquidity Hub, alongside other major cryptocurrencies. The absence of XRP in the latest announcement raised questions, especially considering Ripple's ongoing legal battle with the SEC. This omission led to demands for clarification from Ripple's leadership, particularly from its CTO, David Schwartz.
Legal Insights on XRP's Exclusion
Crypto lawyer Bill Morgan offered insights on the matter, suggesting that Ripple's Liquidity Hub is more expansive than its traditional ODL offerings. The Hub targets a broader audience beyond just ODL customers or cross-border payment users. Morgan speculated that the Liquidity Hub might require deeper liquidity pools than a single asset like XRP could provide.
Ripple's Response and Future Plans
In response to the community's concerns, Ripple amended its Liquidity Hub announcement. The company stated that XRP will be evaluated for future support within the product. Ripple expressed its intention to include XRP once it achieves regulatory clarity in the U.S.
The controversy underscores the complexities Ripple faces in navigating legal and market dynamics while expanding its offerings. The decision to exclude XRP from the Liquidity Hub reflects broader strategic considerations and regulatory challenges.
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