Australian-based lawyer Bill Morgan recently shed light on why Ripple took the difficult decision. He explained in a post on X that despite XRP receiving legal clarity, unresolved issues surrounding the firm’s use and sale of the crypto asset, compounded by the SEC’s pending appeal, have likely influenced the company’s decision.

Read Also: Expert Explains How Bank of America Can Leverage XRP Using Ripple Liquidity Hub

The potential risk of the SEC enforcement action and Ripple’s focus on customer and shareholder demands outweigh the immediate addition of XRP to Liquidity Hub. Regardless, Attorney Morgan speculates that Ripple may consider supporting XRP in the future.

XRP has clarity as not itself a security but Ripple's use or sales does not have final clarity given the SEC's intent to appeal. If Ripple uses XRP in LH can it or its customers be certain this will not attract SEC enforcement until the lawsuit & any appeal is finally resolved./1 https://t.co/fDrhDjEd1U

— bill morgan (@Belisarius2020) September 16, 2023

Ripple’s Exclusion of XRP from Liquidity Hub

Ripple’s Liquidity Hub, a solution designed to bridge the gap between crypto and fiat, notably did not include XRP in its initial list of supported assets, despite launching with several prominent cryptocurrencies and the US Dollar.

The community speculated that this omission was due to the ongoing SEC v. Ripple lawsuit, given that a federal court ruled in July that XRP itself is not a security. Community members expected Ripple to promptly add XRP to Liquidity Hub following the legal clarity, but their expectations were not met. Instead, Ripple recently announced support for stablecoins USDC and USDT.

Read Also: Ripple CLO Stuart Alderoty Addresses Community Concerns Over XRP Exclusion from Liquidity Hub Launched By Ripple

SEC Appeal and Uncertainty

Attorney Bill Morgan clarifies that although XRP now has legal clarity, unresolved issues remain due to the SEC’s intent to appeal the court’s ruling. The SEC seeks an interlocutory appeal to challenge the court’s decision that says programmatic sales of XRP are non-securities.

Ripple and its customers are cautious about incorporating XRP into Liquidity Hub while the lawsuit remains unresolved, as it may potentially attract an SEC enforcement action.

According to Attorney Morgan, Ripple prioritizes the demands of its customers and shareholders over the interests of XRP holders. This approach aligns with Ripple’s assertion that there is no common enterprise between XRP holders and the company, meaning there are no legal obligations from Ripple to XRP holders arising from the purchase of XRP tokens.

John Deaton noted:

“That is hardly surprising. As the XRP community was happy to accept when Ripple argued that there was no common enterprise between XRP holders and Ripple, there are no rights against Ripple from the purchase of an XRP token and Ripple has no legal obligations to XRP holders.’’

Despite Ripple’s current decision, Attorney Morgan speculates that Ripple might add support for XRP in the future. While the specifics surrounding Ripple’s plans remain uncertain, potential developments may unfold as the SEC lawsuit progresses and market dynamics continue to evolve.

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The post Why Ripple Decides Not to Add XRP to Liquidity Hub Despite Legal Clarity Explained appeared first on Times Tabloid.

The main focus of the partnership is to provide a system that will enable Lunu’s customers to accelerate the acceptance of crypto payments by optimizing the exchange of digital assets to fiat.

Read Also: Former Ripple Executive Believes XRP Can Hit $100 in the Long Run. Here’s His Major Point

According to the report, Lunu currently works with customers including Farfetch, Off-White, Browns, and Steven Stone. The Liquidity Hub that Lunu will leverage was launched by Ripple to support long-term crypto adoption, offering turn-key integration and smart order routing to source digital assets at optimized prices.

As stated in the report, Liquidity Hub customers will be able to seamlessly access crypto from various global venues, such as market makers, exchanges, and OTC desks.

Reacting to the new development, the Director of Product at Lunu, Rajesh Madhaiyan, said:

“For luxury retailers it is vital to stay on top of the latest trends, and when it comes to payments the greatest innovation is coming from the evolving crypto scene. Thanks to Lunu these retailers get access to new, younger, more affluent audiences that are constantly growing in numbers. Our partnership with Ripple has the potential to greatly impact retailers’ customer service offerings by expanding the variety of payment methods and by portraying retailers’ brands as more innovative and progressive.”

Sendi Young, Ripple’s Managing Director in Europe, also said:

“Crypto liquidity is the common thread that underpins all of Ripple’s solutions, from payments to lending and credit. Our ambition is to build a suite of enterprise-oriented crypto products for the benefit of our clients and their customers. This is why we are so excited by this fantastic new use case for Liquidity Hub which will enable Lunu’s luxury retail clients to accept crypto payments at the point of sale.”

Read Also: Brad Garlinghouse Says Ripple Plans To Consider Acquisitions in the Future

Ripple’s Growth and Expansion in Europe

Despite the current lawsuit with the U.S. SEC, Ripple has continued to take vital steps in its quest to grow and expand further in Europe. Its desire for expansion is not limited to Europe, but across the globe.

Demand in Europe for Ripple’s products has remained strong. According to the firm’s recent New Value research, 70% of respondents at financial institutions in Europe expect blockchain to have a notable impact on their business in the next five years, while 59% of respondents showcased their interest in leveraging blockchain for payments.

2021 can be seen as the most successful year for Ripple since its emergence. That year, the firm was able to double the number of transactions on RippleNet. At the moment, the average annual volume of payments on the network is $15 billion.

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The post Ripple Seals New Partnership to Boost the Expansion of Its Payment System in Europe appeared first on Times Tabloid.