thecryptobasic.com
Despite Ripple’s earlier statement on the matter, the XRP community has continued to raise questions on the asset’s exclusion.
Stuart Alderoty, General Counsel (or Chief Legal Officer) at Ripple, has addressed queries from the community on the technology firm’s exclusion of XRP from its recently-launched Liquidity Hub solution. The Silicon Valley company had deliberately omitted the asset while retaining other cryptocurrencies.
Alderoty took to Twitter to provide clarity on the inquiries raised. The lawyer’s comments closely followed a Twitter Spaces session held by attorney John Deaton on the matter. Alderoty could not attend the session, so he made these clarifications in a separate thread of tweets.
Can’t join the Spaces today but wanted to clarify some Qs on our newest product Liquidity Hub. 1/ LH is an enterprise (institutional) product, not retail. In the US there is little liquidity for XRP. We’re keen to support XRP in LH when we can provide a good customer experience. https://t.co/uu0ugOjGme
— Stuart Alderoty (@s_alderoty) April 17, 2023
Alderoty emphasized that Liquidity Hub is tailored for enterprises or institutions, and not retail clients. As a result, the product requires a large amount of liquidity, but XRP has very limited liquidity in the United States. “We’re keen to support XRP in LH when we can provide a good customer experience,” he added.
Speaking further, he called attention to the fact that Liquidity Hub has always been touted as a product designed to access liquidity from a wide array of crypto assets, not just XRP. Alderoty noted that most of their clients are institutions in the U.S., and these clients’ demands border on a variety of assets such as BTC, ETH, and stablecoins. According to Alderoty, Ripple seeks to meet these demands.
Moreover, he pointed out the regulatory uncertainty surrounding XRP in the U.S. due to the ongoing SEC lawsuit against Ripple. Alderoty stressed that regulatory clarity is important to its institutional clients, especially those in the United States, as leveraging a product that offers XRP could bring the SEC to their doorsteps.
Alderoty further clarified the distinction between ODL and Liquidity Hub, emphasizing that the former accommodates XRP and will continue to do that.
Deaton’s Opinions
Recall that Ripple had provided clarifications on the matter shortly after concerns emerged that it had excluded XRP. Despite the firm’s statement, the XRP community has continued to raise questions. Attorney Deaton also sought to address the issue during the Twitter Spaces session.
Deaton noted that he does not blame proponents that are disappointed by Ripple’s decision, but clarified that the decision aimed to address the concerns that could have been raised by the enterprises using Liquidity Hub, especially American-based companies such as JPMorgan, Coinbase, and others.
According to Deaton, another reason behind this decision is the fact that the SEC could serve a preliminary injunction to the court to suspend Liquidity Hub if it contained XRP.