Cryptocurrency

Ripple Curtails Support for XRP, Says it Lacks Regulatory Clarity

Ripple, the cross-border payment firm and crypto solutions company, seems to be curtailing support for the 6th largest cryptocurrency by market capitalization, XRP.

The Silicon Valley tech company indirectly cited its lingering case with the United States Securities and Exchange Commission (SEC) as the reason for not supporting XRP in its latest crypto solution project.

Ripple Launches Liquidity Hub, XRP Unsupported

Per a Friday statement, Ripple announced the launch of a project dubbed Liquidity Hub whose objective is to help businesses seamlessly bridge traditional fiat systems with the new world of crypto. The project is also designed to give businesses expanded access to capital and streamlined digital asset management. 

According to Ripple, the Liquidity Hub is a turn-key liquidity and global payout platform which is built particularly to meet the needs of enterprises. Using a variety of digital assets and smart order algorithms, the Ripple Liquidity Hub connects organizations to a rich set of liquidity venues to source optimized pricing.

Ripple Liquidity Hub equally helps businesses to access optimized crypto liquidity and an extensive payout rail network to power crypto payments, crypto treasury operations, and a variety of other solutions.

Shockingly, XRP is not among the digital assets used in this latest crypto solutions service founded by Ripple. Notably, the Liquidity Hub supports only Bitcoin (BTC), Ether (ETH), Ethereum Classic (ETC), Bitcoin Cash (BCH), Litecoin (LTC), USD Coin (USDC), and Tether USD (USDT). 

This has raised concerns in the XRP community as it is surprising to see the Silicon Valley tech company exclude the XRP Ledger native token in its latest product. 

“The connection to XRP is less evident than I had hoped. For context, there is literally no mention of XRP or XRPL in any technical sense. One may only hypothesize as to why, given that Ripple no longer openly mentions XRP except in the context of ODL,” Krippenreiter wrote, adding that the official technical documentation of Liquidity Hub contains no information about XRP or XRPL. 

Responding to these concerns about XRP’s exclusion from Liquidity Hub, Ripple said the asset lacks regulatory clarity but would evaluate XRP alongside other tokens for support within the product.

Part of the announcement read;

“Available 24/7/365, Liquidity Hub leverages smart order routing to source a variety of digital assets at optimized prices across multiple liquidity venues, including market makers, exchanges and OTC desks. These deep liquidity pools from multiple providers ensure liquidity is sourced when you need it—from USD to BTC, ETH, ETC, BCH, LTC, USDC and USDT.”

“XRP will be evaluated along with other tokens for support within the product. We look forward to supporting XRP as it receives regulatory clarity in the U.S.”


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Ndianabasi Tom

Ndianabasi Tom joined the crypto and blockchain industry in late 2018. He is an all-rounded crypto journalist and content writer. At TimesTabloid, he covers the industry's latest news, developments, and other educational content. He is a graduate of Petroleum Engineering.

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