Ripple Liquidity Hub – A Step Closer To Become The Amazon Of Crypto
FinTech giant Ripple announced “Liquidity Hub“, describing it “a one stop shop for enterprises to source any tokenized asset.”
With the goal to promote the mainstream adoption of cryptocurrencies, Ripple is planning to launch a liquidity hub to enable financial firms to offer trading services.
San Francisco-based payment giant Ripple recently announced that it will launch a product that will allow financial services companies to offer their clients access to crypto trading.
Ripple Liquidity Hub
The company made the announcement through an official blog post, explaining that the new product called “Ripple Liquidity Hub,” will enable enterprise clients to access digital assets from a wide range of providers, including market makers, exchanges, and over-the-counter (OTC) trading desks.
According to the announcement:
“Designed as a turnkey solution for financial institutions, Ripple Liquidity Hub will leverage smart order routing to source digital assets at optimized prices from market makers, exchanges, and OTC desks. Enterprises will use Ripple Liquidity Hub to easily and seamlessly provide their end customers with the ability to buy, sell and hold digital assets at the best possible prices across a range of venues.”
Liquidity Hub will initially provide support for six of the most prominent cryptocurrencies in the industry, with more digital assets scheduled to be added over time, the announcement explained.
Ripple Liquidity Hub will initially support Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ethereum Classic (ETC), Bitcoin Cash (BCH) and XRP with plans to add additional digital assets over time. In the future, Ripple plans to add functionality such as staking and yield generating functionalities.
The blockchain company pointed out that the availability of these digital assets, however, will vary by geographical locations.
Asheesh Birla, the general manager at RippleNet commented:
“We know full well the need for easy and efficient liquidity management. Crypto and financial institutions are embedded in our DNA. So, it makes perfect sense that as they prepare for a crypto-first world, our customers would want access to the same trusted one-stop shop for buying, selling, and holding crypto assets that have powered our own extensive work with financial institutions.”
Launch in 2022
As per the announcement, Ripple will keep adding new features to the Liquidity Hub, including staking and several yield generating functionalities.
According to Birla, the infrastructure for the Ripple Liquidity Hub is already mostly in place. The service is currently in its preview stage and is expected to go live in early 2022.
Coinme was announced as the first partner for the alpha version of the liquidity hub. Coinme is the first licensed bitcoin ATM company in the United States, with thousands of locations across the country. Initially, Coinme will utilize the underlying technology platform of Liquidity Hub, with plans to unlock additional functionality as it becomes available.
