- Ripple’s Liquidity Hub has launched without XRP as a supported asset amid ongoing SEC lawsuit.
- Ripple executives clarified that XRP’s omission may be temporary, as it awaits regulatory clarity and evaluates XRP for support within the product.
Ripple Labs’ newly launched Liquidity Hub does not currently include XRP as a supported asset, as the company remains embroiled in an ongoing lawsuit with the US Securities and Exchange Commission (SEC) over whether XRP is a security.
Ripple initially announced the launch of the Liquidity Hub in November 2021, stating that it would offer access to XRP, along with other digital assets, such as bitcoin, ether, litecoin, ethereum classic, and bitcoin cash. Ripple recently clarified that its liquidity pools would cover BTC, ETH, LTC, ETC, BCH, as well as US dollars (USD) and stablecoins USD Coin (USDC) and tether (USDT).
Ripple’s blog post stated that “XRP will be evaluated along with other tokens for support within the product” and that it looks forward to supporting XRP once it receives regulatory clarity in the US.
Ripple’s decision not to include XRP in the Liquidity Hub has raised questions about whether the company is bearish on the asset amid its ongoing lawsuit with the SEC. However, Ripple executives have clarified that XRP’s exclusion may be temporary and that it is keen to support the asset when it can provide a good customer experience, and based on customer demand.
Ripple’s Chief Legal Officer, Stuart Alderoty, explained that the low liquidity for the asset in the US was another reason XRP wasn’t included. He added that Ripple’s on-demand liquidity (ODL) product has been using XRP for years and will continue to do so.
Attorney John Deaton, who led a class action lawsuit against the SEC alleging its enforcement action against Ripple harmed XRP investors, said that Ripple’s decision to exclude XRP from the Liquidity Hub was not surprising and likely makes legal sense. Deaton noted that Ripple is offering liquidity for businesses, so its decision not to include XRP may be about mitigating risks associated with the ongoing lawsuit.
Ripple has spent nearly $8.4 billion to buy XRP since the beginning of 2021 to protect the token’s markets and its customers, according to a ETHNews analysis of the company’s quarterly reports.