Bill Morgan has thrown his weight behind Ripple over excluding XRP from its liquidity hub.
Pro-XRP lawyer and digital asset enthusiast Bill Morgan took to Twitter to comment on a recent conversation between John Deaton, an attorney and founder of CryptoLaw, and Paul Grewal, the chief legal officer of Coinbase. Bill Morgan pointed out the part of the interview that he found interesting, stating that Paul Grewal shared that about 20% of Coinbase’s revenue is from its international business. The company depends on Bitcoin and Ethereum for 54% of its transaction revenue, according to the company’s last quarterly report.
90% of Ripples Businesses outside the USA
Bill Morgan deduced from Coinbase’s last quarterly report that Ethereum trading in the USA is important to Coinbase’s business, and any attempt by the company to stop Bitcoin and Ethereum trading will draw challenges for the exchange. Bill Morgan in comparing Coinbase to Ripple stated that 90% of Ripple businesses are outside the USA as Ripple’s sales of XRP to ODL customers is the source of the company’s income.
Bill Morgan Supports XRP Exclusion
Bill Morgan supports the fact that the Ripple liquidity hub excluded XRP, because this will help Ripple increase its business in the USA and depend less on the sales of XRP, which will lead to diversification for the company.
Liquidity Hub even not using XRP makes sense because it allows Ripple to increase its business in the USA and be less dependent on sales of XRP. In effect to diversify/4
— bill morgan (@Belisarius2020) May 10, 2023
As reported by The Crypto Basic, Ripple excluded XRP from its liquidity hub as it currently supports BTC, ETH, LTC, ETC, and BCH.
The Chief Legal Officer at Ripple, Stuart Alderoty addressed the reason the company had excluded XRP from the liquidity hub, stating in the United States, there is no regulatory clarity for XRP, which is important to enterprise customers.
Alderoty further clarified that Liquidity Hub is intended for enterprises and not retail clients, and requires substantial liquidity. As XRP has limited liquidity in the US, they aim to support it when they can offer a good customer experience. Alderoty noted that Liquidity Hub is designed to access liquidity from various crypto assets, not just XRP.
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