学院 News 文章

The adoption of On-Demand Liquidity is currently slowing down

In a recent interview with Modern Consensus magazine, Ripple CEO Brad Garlinghouse offered some interesting insights into the company’s business activities, particularly with regard to XRP and IT-based cross-border payment solutions for on-demand liquidity. Garlinghouse explains that the demand for on-demand liquidity is so great right now that Ripple can’t meet all the demand. According to Ripple CEO Brad Garlinghouse, the adoption of on-demand liquidity is currently slowing down because there isn’t enough liquidity to go around. Xrp-based ODL transactions accounted for almost a fifth of all RippleNet transactions last quarter.

In this sense, Garlinghouse stated that
Ripple had to slow down the adoption of ODL because there is currently not
enough liquidity to meet demand:

[Ripple has] actually throttled that growth
because one of the things that’s important when using ODL is you have to have
really good liquidity on both sides of the transaction. And so, if XRP doesn’t
have enough liquidity in the marketplace and you can’t put as much demand
through.

The CEO of Ripple justified this by arguing
that ODL relies on crypto exchanges to accept Fiat currencies and settle XRP
across borders. In principle, ODL offers a transfer in seconds to avoid the
general problem of price volatility of cryptocurrencies. However, this is only
guaranteed if there is sufficient liquidity in ODL’s system and the specific
payment corridor with the help of partner exchanges to buy and sell XRP within
seconds.

According to Asheesh Birla, Senior Vice
President of Product at Ripple, Ripple and its ODL technology is still making
great strides. “Ripple continues to expand globally, bring on new customers to
RippleNet, specifically ODL, and see an increase in RippleNet transactions,”
Birla explained in the interview. Since the introduction of RippleNet,
transactions worth more than $2 billion have been completed, with ODL accounting
for nearly one-fifth of RippleNet transactions in the last quarter.

With regard to the XRP price, Garlinghouse
stressed that it has a long-term perspective. Ultimately, according to Ripple’s
CEO, increasing liquidity will determine customer usage and thus have a
positive impact on the price:

I do not spend a lot of time and energy
focused on the ups and downs. I don’t think about the price on a short-term
basis. I have said publicly before, I think about it over many years, not over
many days or even weeks, as long as we have the liquidity in the marketplace to
be able to deliver on the products we are building for our customers.

Modern Consensus also addressed the
currently pending class action lawsuits against Ripple Labs and their threat to
ODL. If the lawsuit is lost, Ripple could be forced to discontinue the sale of
XRP. Stuart Alderoty of the General Counsel of Ripple Labs commented on this
and blamed the legal vacuum in the US for the lawsuits.

However, Garlinghouse was optimistic about
a positive outcome for Ripple, and referred to the letter from the US Consumer
Financial Protection Bureau and the green list from the New York State
Department of Financial Services, which recently approved corporate custody of
XRP.

Author : Jake Simmons

加⼊欧科云链社群

和全球数字资产投资者交流讨论

扫码加入欧科云链社群

相关推荐

news