Ripple launches crypto liquidity solutions to finance firms offering crypto trading

"Ripple coin on a paper dollars"
“Ripple coin on a paper dollars money” by marcoverch (licensed under CC BY 2.0)

Key Takeaways:

  • Ripple set to launch a product aimed at helping finance firms offer their customers exposure to cryptocurrencies.
  • The launch coincides with the court granting the SEC’s motion to compel Ripple to hand over “hidden” recordings.
  • XRP, Ripple’s native token, fell 19.40% between high to low levels on Oct 10.

NEW DELHI (CoinChapter.com) — Blockchain-based digital payment protocol Ripple announced the launch of a new service that would allow financial firms to offer their clients access to cryptocurrency trading.

The fintech firm said that its new product, dubbed Ripple Liquidity Hub, would be a new way for mainstream crypto to engage with financial institutions. In its announcement, Ripple claims the new platform would help ‘accelerate the shift to crypto.’

The Liquidity Hub would offer its enterprise clients access to cryptocurrencies from several sources, including market makers, exchanges, and OTC trading desks. Initially, the cryptocurrencies offered will include Bitcoin, Ethereum, Litecoin, Ethereum Classic, Bitcoin Cash, and XRP.

There are plans to add support for more cryptocurrencies in the future. Additional features such as staking and yield generating functionalities are also in the works. However, Ripple said the availability of cryptocurrencies might vary geographically.

The feature is already in use to support Ripple’s On-Demand Liquidity (ODL) product for almost two years. RippleNet General Manager Asheesh Birla stated that the crypto sourcing technology behind ODL would be made available to customers in 2022 as Liquidity Hub.

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 has powered our own extensive work with financial institutions.

Asheesh Birla, General Manager, RippleNet, in its announcement.

The latest offering from Ripple would use smart order routing to search digital assets at the best prices. In addition, the service already has its first partner in Coinme, USA’s first licensed Bitcoin ATM provider. The announcement comes at a time when Ripple is on the backfoot in its legal battle with the SEC

Ripple On Backfoot In Its Battle With SEC

Judge Sarah Netburn ordered Ripple to search and turn over video records of the fintech firm’s internal meetings. Ripple had argued that the SEC’s demand was “incompatible with the federal rules.” Additionally, the defendants believe the SEC’s claim that the recording would prove XRP’s sale as security is conjecture.

Recommended: SEC vs Ripple drags on while the next big ruling might come in January, says attorney.

However, the SEC stated that Ripple did not search its recordings library or even inform the regulator that ‘it was withholding responsive recordings.‘. The fact to light only when Ripple’s former CCO testified in the last month of fact discovery.

As such, the SEC pointed out that Ripple’s conduct forced the regulator to file its motion to compel.

Judge Sarah Netburn ordered Ripple to “conduct a reasonable search” for relevant video and audio recordings in her ruling. Furthermore, she recognized that a human review of the recordings would be unreasonable due to the number of recordings.

Moreover, the judge ordered the parties to meet and determine if certain periods are more likely to respond to the SEC’s discovery demands.

In light of the close of discovery, Ripple is ordered to undertake such efforts without delay.

Judge Sarah Netburn in her order.

The order comes as a major win for the SEC. Moreover, Ripple’s recordings would likely provide the regulator with further evidence to strengthen the regulator’s case.

XRP Prices

XRP began the week on a high, gaining 5.04% intraday on Monday. However, the Ripple token failed to continue its upward movement that began on the weekend and fell to $1.119 on Oct 10.

The Ripple token has struggled to move above $1.4 after falling below it on May 19. At present, XRP Price faces resistance at $1.26. Interestingly, the Ripple token had moved above its immediate resistance on Oct 8, two months after falling below it on Sept 7.

XRP prices fell below immediate resistance
XRP prices fell below immediate resistance on Oct 10. Source: XRPUSD on Tradingview.com

If XRP manages to hold above immediate resistance, $1.30 would likely be the next price target for bulls. In case of sustained buying pressure, XRP might likely reach $1.353 before any pullback occurs.

On the other hand, a downside movement would find support at $1.155, near the Ripple token’s 26-day EMA. XRP also tested support at $1.12 on Oct 10 before rebounding. Further support for XRP is at $1.065, a level that has stood multiple tests by the token since Oct 9.

Also Read: XRP price eyes breakout as Ripple Labs wins right to hide ‘privilege logs’ from SEC.

Additionally, the Ripple token is bullish across all time horizons, trading above its 50-day and 200-day MA lines.

Further bullish indicators come from XRP’s MACD. The trend-based momentum oscillator is bullish for XRP currently. Bars on the MACD histogram, which plots the difference between the MACD line (difference between 12-day and 26-day EMA) and its signal line (9-day EMA of MACD), are green.

MACD continues to be bullish for XRP.
MACD continues to be bullish for XRP. Source: XRPUSD on Tradingview.com

When the bars are positive, the MACD line is higher than the MACD signal line, and the momentum is bullish. The relative strength index for XRP is neutral, with a value of 58.52.

At the time of writing, XRP was trading at $1.225, up 2.88% on the day.

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