Prominent XRP community figure Yassin Mobarak has renewed conversations about XRP’s exclusion from one of Ripple’s products to institutions.
In a recent tweet, Yassin Mobarak, the founder of Dizercapital, raised a pressing question to David Schwartz, Ripple’s Chief Technology Officer (CTO).
Mobarak asked Schwartz to shed light on why XRP has yet to be incorporated into Ripple’s Liquidity Hub product even after the landmark legal decision that is now five months old.
Recall that on July 13, U.S. Judge Analisa Torres affirmed that XRP is not inherently a security, unlike the claim of the U.S. SEC.
Notably, the XRP Army expected the legal victory to pave the way for XRP’s inclusion in various platforms, including Ripple’s Liquidity Hub. However, the digital asset is conspicuously absent from the hub.
Meanwhile, Ripple has recently included stablecoins USDT and USDC in its Liquidity Hub offering. These turnouts have prompted XRP community members like Mobarak to seek clarification from the Ripple executive team about XRP’s exclusion.
Ripple CTO Reacts
David Schwartz responded to the inquiry. Yet he refrained from publicly explaining Ripple’s decision to exclude XRP from the Liquidity Hub. He remarked:
“Unfortunately, no. Look at what happened the last time I did exactly this around our ODL strategy.”
Unfortunately no. Look at what happened the last time I did exactly this around our ODL strategy.
— David "JoelKatz" Schwartz (@JoelKatz) December 2, 2023
Other XRP community members weighed in on the conversation, speculating reasons behind XRP’s exclusion from Ripple’s hub. An XRP enthusiast with X username “Barron” remarked:
“The lawsuit has not fully concluded. And regulations still haven’t been established in the US as well as many other regions. Patience wins the race.”
As Barron rightly pointed out, while XRP’s non-security status has been cleared, Ripple’s XRP sale to institutional investors is still a matter of contention in the U.S. court. Emphatically, Ripple’s Liquidity Hub caters to institutions.
In a similar conversation in the past, pro-XRP lawyer Bill Morgan recognized the rationale behind Ripple’s decision to exclude XRP for U.S. businesses. On the other hand, he questioned the reasoning behind not supporting XRP in the services to non-U.S. institutions, particularly in countries like Brazil and Australia.
Additionally, Morgan argued that XRP boasts a more favorable regulatory status than Bitcoin, Litecoin, Ethereum, and Bitcoin Cash. These digital assets are all supported on the Ripple Liquidity Hub.
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