Ripple May Become a Key Liquidity Provider with Ripple Payments XRPL DEX Integration

Panos Mekras, a renowned author and prominent figure in the XRP community, has expressed a view that Ripple itself as a company could become a liquidity provider for greater efficiency.

Mekras’ comment followed the official unveiling of Ripple’s new solution to the crypto market, Ripple Payments.

On Wednesday, Ripple officially unveiled Ripple Payments. The firm noted that this new product is the latest advancement in its payment solutions. Per the official notification, Ripple Payments, a licensed product, offers various features for Financial Institutions (FIs) and Small and Medium Enterprises (SMEs).

Notably, it includes access to over 70 payout markets, enhanced options for cryptocurrency liquidity, seamless integration with the XRP Ledger decentralized exchange (DEX), and several other value-added services.

Introducing Ripple Payments—the next evolution of Ripple’s payments product delivering a licensed end-to-end solution for FIs and SMEs with 70+ payout markets, expanded crypto liquidity options, integration with the XRP Ledger DEX, and much more.https://t.co/khOxtCnXin

— Ripple (@Ripple) November 8, 2023

Ripple Becoming Liquidity Provider with XRPL DEX Integration

Panos Mekras, the author of “Understanding the Crypto Economy,” expressed his excitement in response to the unveiling. While he believes it represents a significant evolution in Ripple’s payment products, he highlighted a potential outcome for the payment firm.

Mekras first noted that, in his view, the most critical aspect of Ripple Payments is the integration with the XRPL, particularly once Automated Market Maker (AMM) functionalities are enabled.

In particular, Mekras pointed out that the integration could significantly boost DEX volume and revenue for liquidity providers. In this context, the expert suggested Ripple itself might become a liquidity provider (LP), which he believes could lead to greater efficiency.

For me, the biggest takeaway from this announcement is the XRPL DEX integration. Especially once the AMM is enabled, this will directly contribute to the DEX volume and revenue for liquidity providers. Ripple could even become a LP themselves for bigger efficiency. https://t.co/lBuRnL1Ew5

— Panos 🔼{X} (@panosmek) November 8, 2023

Moreover, Mekras highlighted the possibility of XRPL AMM/DEX taking the lead as the most liquid automated market maker globally.

Where Ripple opts to use a portion of its XRP holdings for the AMM and in various XRP to fiat-stablecoin pairs, Mekras envisions the XRPL’s AMM/DEX becoming the world’s most liquid automated market maker.

In parallel, the expert foresees the possibility of XRP becoming one of the most liquid assets globally.

Source