San Francisco-based fintech firm Ripple has launched a liquidity solution to act as a bridge between crypto and fiat currency for businesses.
The Ripple Liquidity Hub launched 13 April following a successful pilot last year.
“Liquidity Hub is publicly available to provide businesses with a simple, seamless way to manage their modern crypto liquidity needs,” the firm said.
The hub is a stand-alone solution operating separately from Ripple’s cross-border payments service called on-demand liquidity (ODL).
Built for enterprises, the hub will offer digital assets from sources across the market, be it crypto exchanges or trading desks.
When an enterprise customer needs liquidity, it sources the funds from deep pools ranging from US dollars to Bitcoin, Ether, or Litecoin. Ethereum Classic and Bitcoin Cash are also available as part of the service.
Ripple’s own token, XRP, is not mentioned in the product launch. The token has been a key component of many of its liquidity products and services in the past, particularly with cross-border services.
XRP was also mentioned as one of the available assets in the hub’s pilot phase in 2022. Its lack of mention may be a consequence of the fintech’s ongoing legal exchange with the US Securities and Exchange Commission.
Ripple said that its liquidity solution can drastically reduce operational costs for high-volume transactions through optimised crypto pricing and liquidity across asset pairings.
The hub also removes the need to pre-finance any positions to source liquidity or execute transactions. Ripple added that the service will lock in optimum prices for digital assets, protecting companies from market fluctuations and price swings.
Ripple has become a popular service provider in the fintech space for its liquidity and cross-border payment solutions. The firm’s ODL solution is used by a number of banks around the globe to bring cryptocurrencies into their remittance services.
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