Ripple’s New Liquidity Hub Excludes XRP: Why It Matters

Ripple’s XRP is suitable for On-Demand Liquidity, not for Ripple’s new Liquidity Hub due to different licensing requirements.

A human hand brushing XRP tokens off of a tiny floating rock in outer space.
  • Neil Hartner has highlighted why XRP suits ODL but not Ripple’s new Liquidity Hub.
  • Ripple’s decision not to use XRP in the new product has sparked debates within the community.
  • Ripple has shown awareness of regulatory requirements as it decided not to use its native cryptocurrency in the new Liquidity Hub.

According to Neil Hartner, a senior staff software engineer at Ripple, XRP is well-suited for On-Demand Liquidity (ODL). Still, it may not be a viable option for Ripple’s new Liquidity Hub. The reason for this lies in the licensing requirements for each platform, which differ from one another.

Ripple’s Liquidity Hub: No XRP Integration?

Hartner explains that in ODL, the sender and receiver settle payments directly, with Ripple acting only as an intermediary to facilitate the transaction. This means that Ripple is not a counterparty, and XRP can be utilized without any legal or regulatory obstacles. 

However, in the Liquidity Hub, Ripple takes a position in the middle of the transaction, making the company a counterparty. This creates additional legal and regulatory requirements that XRP may be unable to meet.


It is worth noting that XRP is not essential to Ripple. While Ripple initially announced plans to incorporate XRP into its new product, a recent presentation revealed that the token would not be available in the near future. 

Various opinions have emerged on this issue. Some suggest that Ripple’s decision not to use XRP in the new product may have positive implications in the ongoing litigation with the SEC. Lawyer Bill Morgan, for example, argues that this turn of events highlights the independence of XRP and XRPL from Ripple and vice versa. 

On the Flipside

  • While XRP may not be suitable for Ripple’s new Liquidity Hub, it has been an integral part of the company’s operations for years, particularly in the ODL system.
  • While XRP is not essential for Ripple, it remains a key part of the company’s strategy for expanding its cross-border payment capabilities.
  • The recent decision not to include XRP in Ripple’s new Liquidity Hub disappointed some investors, who hoped the product would drive demand for the token.

Why You Should Care

Hartner’s explanation sheds light on the licensing requirements for Ripple’s ODL and Liquidity Hub, which is crucial for regulatory compliance. This decision not to use XRP in the Liquidity Hub reflects Ripple’s awareness of the legal and regulatory issues associated with being a counterparty in transactions.

To learn more about the potential implications of Ripple losing its legal battle against the SEC, check out this article:


What Happens If Ripple Loses Against the SEC? Lawyer Explains Why Coinbase Won’t Relist XRP

And if you’re interested in the latest updates on the altcoin market, take a look at this recent article:

Bitcoin Dominance Slides. Is Altcoin Season Finally Here?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.