Is Ripple looking to build a market-making platform for XRP?
Ripple, the global payments platform that created the digital asset XRP, is reportedly looking to launch a market-making platform for XRP though a spokesperson of the company who has denied any such plans for now.
This could be something that is still in the works at this point and so the company may not want to confirm this news at this time but the recruitment for the same seems to have started in Singapore and London where it is looking to launch with a 10-member team initially, as reported by CoinDesk.
It is likely to have a crypto trader who would be looking for arbitrage opportunities and a marketing and salesperson as well who would be engaged with the community and also with liquidity providers and exchanges as well.
Such a platform would help Ripple to manage the liquidity of XRP even if other exchanges are forced to give it up in the future. As has been repeatedly mentioned, there is the ongoing saga of a tussle between SEC and Ripple which has been played out in the courts with regards to the charge of its employees offering unregistered securities to the public in the US which is not allowed by law.
This tussle has been going on for a long and it remains to be seen what kind of outcome there would be for Ripple and what impact it would have on XRP in the long term.
This has led to the stopping of trading of XRP at the high-frequency trading firm Jump Trading and other exchanges like Coinbase also followed suit as they suspended trading as well. If this spreads and SEC continues to pound down Ripple, then it might lead to a situation where XRP is pulled off from most of the exchanges around the world and this would be bad news for the community.
So, it does make sense for Ripple to be looking to launch its own market-making platform for XRP so that it need not be dependent on other platforms and exchanges. Ripple is a global payments company while XRP is a digital asset that can be used for remittances and micropayments as well. Both of these could get affected if the SEC decides to continue pursuing its case against Ripple and its executives and if the court rules in its favor.