Linqto COO details how the Liquidity Hub from Ripple can help large financial institutions navigate large XRP transactions.
In an interview, Joseph Endoso, the Chief Operating Officer at Linqto, provided insights into how large financial institutions could leverage XRP through Ripple’s Liquidity Hub.
Endoso cited specific examples using the Bank of America (BoA). He highlighted the strategic intent behind Ripple introducing the Liquidity Hub product and its suitability for institutions seeking seamless transactions.
XRP influencer Digital Asset Investor shared a snippet of Endoso’s interview with the crypto community on X.
— Digital Asset Investor.XRP (@digitalassetbuy) August 21, 2023
In the interview, Endoso proposed that Ripple consider integrating Liquidity Hub into the existing RippleNet product.
He believes doing so would allow RippleNet users, including BoA, to seamlessly tap in Liquidity Hub. The ultimate result will be that institutions can efficiently manage XRP positions required for executing transactions via On-Demand Liquidity (ODL).
Furthermore, the Linqto COO described Ripple Liquidity Hub as a smart router engine. He highlighted that Ripple connected the hub to accounts across numerous global liquidity venues. It includes virtually all exchanges with a depth of liquidity.
BoA Transacting with XRP
The Linqto COO explained that institutions like BoA can effectively navigate large XRP transactions by being a Liquidity Hub user. He cited an instance where an institution needed to carry out a translation involving one billion XRP.
Endoso noted that the platform would intelligently break down the amount into smaller fractions. Afterward, it would route them across multiple exchanges to ensure optimal execution and the best average price for XRP.
Moreover, Endoso detailed the utility of Liquidity Hub in facilitating the buying and selling of XRP for institutions. He mentioned that after using XRP for ODL purposes, an institution could employ the Hub to reverse the process. In his words:
“I have that same smart engine route my sell order and go back to cash if that’s what I want —to sell the xrp across all the venues to get the optimal price for Bank of America.”
Notably, Endoso stressed that at no point would institutions engaging Liquidity Hub have recourse to seek XRP directly from Ripple. According to him, Ripple’s role would be to monitor the continuous availability of XRP across the multiple transacting exchanges.