Stuart Alderoty, the top lawyer at Ripple, took to Twitter to explain why the company’s new enterprise-level product, the Liquidity Hub, does not currently include XRP. According to Alderoty, the Liquidity Hub is aimed primarily at institutional clients rather than retail customers, and at present, there is limited liquidity for XRP in the United States. Ripple plans to incorporate XRP into the Liquidity Hub once it can provide a better customer experience and liquidity improves. Additionally, the Liquidity Hub is designed to access a range of cryptocurrency liquidity, not just XRP, as institutional clients demand access to a variety of tokens including Bitcoin, Ethereum, and stablecoins.
The lack of regulatory clarity in the US regarding XRP’s status as a security is also a major factor in its absence from the Liquidity Hub. Ripple’s ongoing legal battle with the SEC has created uncertainty around XRP’s regulatory status, which is crucial for enterprise clients. It is worth noting that Ripple’s On-Demand Liquidity (ODL) service continues to use XRP and remains successful globally. XRP is sold to ODL clients for use in the product, and sales are reported quarterly. Alderoty clarified that the Liquidity Hub and ODL are two separate products serving different customer segments.