Thursday, June 20, 2024
HomeBlockchainRipple CTO Speaks On Why XRP Remains Excluded from Ripple Liquidity Hub

Ripple CTO Speaks On Why XRP Remains Excluded from Ripple Liquidity Hub

The XRP community has been abuzz with discussions surrounding the exclusion of XRP from Ripple’s Liquidity Hub, a product designed to facilitate cross-border payments for institutions.

This ongoing debate gained traction after a recent post on X by Yassin Mobarak (@Dizer_YM), the founder of Dizercapital, who questioned David Schwartz, Ripple’s Chief Technology Officer (CTO), about the rationale behind the continued exclusion.

Read Also: Ripple CTO Schwartz Addresses Concerns Surrounding New XRP Ledger (XRPL) Feature

Mobarak’s query stems from the landmark legal ruling in July 2023, which affirmed that XRP is not a security under U.S. securities laws. This victory was widely anticipated to open doors for XRP’s inclusion in various platforms, including Ripple’s Liquidity Hub.

However, the digital asset remains absent from the hub 5 months after the ruling, despite the presence of stablecoins like USDT and USDC.

David Schwartz Responds

Schwartz, while acknowledging the community’s concerns, refrained from providing a definitive explanation for XRP’s exclusion. He alluded to previous instances where his public comments on Ripple’s ODL strategy had led to unintended consequences.

However, XRP enthusiasts, such as Barron.xrp (@XRPenitentiary), suggested that the ongoing SEC lawsuit and the lack of clear regulatory frameworks in certain jurisdictions may be contributing factors to Ripple’s cautious approach.

XRP’s favorable regulatory status compared to other supported assets like Bitcoin and Ethereum further highlights the need for its inclusion in the Liquidity Hub.

However, the nature of the lawsuit might be a cause for concern as the Liquidity Hub caters to institutional investors, and the only contention left in the lawsuit is Ripple’s violation of securities laws in XRP sales to institutional investors.

Read Also: Ripple CTO David Schwartz: Questioning XRP Ledger’s Decentralization Is Incredibly Stupid

The History of Liquidity Hub Concerns

Pro-XRP lawyer Bill Morgan also weighed in on the debate a while ago, acknowledging the valid reasons behind Ripple’s decision to exclude XRP from the Liquidity Hub.

According to Morgan, Ripple’s focus on the concerns of its customers and shareholders and the risk of enforcement action from the SEC is greater than the need to add XRP to the Liquidity Hub. He believes Ripple will add the token in the future.

<

The XRP community’s concerns regarding the exclusion of XRP from Ripple’s Liquidity Hub are understandable, given the asset’s favorable regulatory status and the potential benefits it could bring to the product.

Despite XRP’s absence from the Liquidity Hub, the legal clarity has brought opportunities like Ripple’s discussions of a potential partnership with the Australian Freight and Trade Alliance (FTA), which resumed after the July victory.


Follow us on Twitter, Facebook, Telegram, and Google News

Tobi Loba
Tobi Loba
Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.
RELATED ARTICLES

Latest News & Articles