HomeNewsRipple's Liquidity Hub Conundrum: XRP's Absence Raises Eyebrows

Ripple’s Liquidity Hub Conundrum: XRP’s Absence Raises Eyebrows

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  • Ripple CTO David Schwartz engages the crypto community, sparking a debate on XRP’s exclusion from Ripple’s Liquidity Hub.
  • Notable attorney, Bill Morgan, emphasizes XRP’s current legal clarity, contending its rightful place in the hub.

XRP’s Puzzling Omission from Ripple’s Liquidity Framework

Recently, Ripple’s Chief Technology Officer, David Schwartz, took to Twitter seeking insights on crypto topics for future elucidation. The XRP community swiftly reciprocated, suggesting themes that needed demystifying, such as Ripple and XRP’s symbiotic relationship and the standing of Ripple’s On-Demand Liquidity offering.

The Crux: XRP’s Non-Inclusion in the Liquidity Hub

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Among the plethora of responses, a pressing query came from Bill Morgan, a respected lawyer and known XRP advocate. Morgan candidly probed Schwartz on XRP’s noticeable absence from Ripple’s Liquidity Hub, especially considering its unequivocal legal status.

He pointedly remarked,

“Given that the court determined XRP is not a security, why hasn’t Ripple integrated XRP into its liquidity hub?”

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Adding to this narrative, a prominent XRP influencer, Mr. Huber, hypothesized that Ripple’s Liquidity Hub might be exclusively structured to address institutional needs. Further supporting this claim, Ripple’s official blog did mention the hub’s intent to simplify digital asset transactions for businesses in the US, Australia, and Brazil.

Yet, the overarching question remains: Why, despite being a formidable digital asset, is XRP not featured in this hub?

Digging deeper into this puzzle, Morgan acknowledged the potential hurdles with offering XRP to US-based entities. But he quickly retorted on the unexplained exclusion for non-US enterprises, particularly in countries like Australia and Brazil. He posited,

“Given that liquidity pools are partially fueled by XRP on exchanges, and not direct sales, wouldn’t it make sense for the Liquidity Hub to incorporate XRP?”

To further bolster his stance, Morgan underscored that XRP currently boasts a more favorable regulatory environment compared to other cryptocurrencies like Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH) that are readily available on Ripple’s Liquidity Hub.

The debate took another turn when a user queried the distinction between Ripple provisioning XRP to institutions and the other digital assets supported by the hub. The backdrop being, a US court’s declaration that Ripple’s institutional XRP sales are tantamount to security contracts.

To this, Morgan elucidated that institutions likely didn’t anticipate profit from Ripple when they procured assets like BTC, ETH, or LTC.

As the crypto community ardently awaits a response, Ripple’s CTO remains silent on this pressing matter.

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Jack Williams
Jack Williams
As a Blockchain Analyst, I specialize in analyzing the performance of decentralized systems and optimizing their efficiency. Through data analysis, I provide insights on blockchain technology, smart contracts, and cryptocurrencies to help businesses make informed decisions and improve their operations.
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