Simplified management for multiple crypto liquidity sites

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Many crypto businesses are moving at a rapid pace and looking for more than one place of liquidity to meet their business needs. This success is accompanied by growing difficulties related to the management of several liquidity venues. These companies can surely understand the immortal sayings, it’s like the more money we meet, the more problems we meet. For companies engaging in crypto, the opportunity cost of increased business demand and expansion is the operational complexity associated with managing an ever-growing stable of liquidity venues for assets. potentially volatile.

And while crypto offers businesses the potential to improve their operations, diversify their balance sheets, and create new revenue streams, some companies may be reluctant to take on the added complexity of engaging and managing crypto.

Management of several liquidity platforms

Liquidity is an important factor for a healthy business that engages in cryptofacilitation of core cash functions, enabling growth and protecting against risk. But to engage with crypto effectively and efficiently, reliable and robust liquidity venues are needed.

As a business that engages with crypto balances, it must maintain commensurately higher levels of liquidity to optimize operations and support growth. To satisfy this demand, avoid disruptions and optimize prices, companies often use several exchanges or marketplaces to create liquidity.

Yet each liquidity platform is dynamic with ever-changing levels of liquidity volume and varying rules of engagement. As companies activate more, the complexity of managing their assets across all these liquidity venues can become onerous.

Leveraging Crypto for Business Operations

Businesses are increasingly leveraging crypto to improve their business operations by reducing merchant settlement times, diversifying asset balance sheets, and using crypto for payments.

For example, stablecoins are used to settle payments with merchants 24/7/365 because crypto is not limited to bank hours. Some companies also seek to hold a wide range of assets on their balance sheet for diversification purposes. The acceptance of crypto as a method of payment has also helped businesses generate additional revenue by attracting new customers and building their reputation for innovation.

Choosing a crypto-liquidity provider

For many businesses, choosing the right liquidity provider is paramount to optimizing price, especially for high-volume transactions. The wide range of crypto exchanges, their respective commitment requirements, and varying stages of maturity and sophistication can make this process complex and overwhelming, even for crypto-savvy businesses.

Similar to fiat liquidity venues, crypto exchange requirements can be onerous. For example, limits on large capital withdrawals require precise and complex order forecasts and predictions, an amplified requirement for global organizations. This often requires hiring and managing an expert or a dedicated team.

Many crypto exchanges also require customers to pre-fund accounts prior to a crypto purchase. This can lead to large capital commitments, which tie up funds that could be used in other areas of the organization. Crypto payment service providers (PSPs) may be forced to use crypto assets when in reality, crypto PSPs should only act as an intermediary, not as an exchange or brokerage.

Likewise, the cost of withdrawals can be high for crypto PSPs and lead to unexpected price changes depending on the fiat pair. And, unfortunately, many exchanges do not optimize payments to different countries.

Poor management of capital and risk requirements can lead to significant costs and operational challenges. Centralizing crypto assets in one place can reduce expenses but increase risk exposure. Conversely, spreading this risk across multiple crypto liquidity providers can improve risk management, but can also lead to increased administrative complexity and higher costs.

Supercharging Crypto with Liquidity Hub

Designed with these enterprise crypto needs in mind, Liquidity Hub leverages Ripples’ deep experience in crypto, finance, and cross-border payments to make crypto management efficient for every business. through a simple and streamlined API.

By connecting to Liquidity Hub, clients can access a diverse range of liquidity sources without the need for capital-intensive pre-funding. The product uses intelligent order routing to source digital assets at optimized prices from a number of locations such as market makers, exchanges, and OTC desks. This allows businesses with high volume transaction needs, such as cash management, to realize significant cost savings.

Additionally, through the Ripples suite of products, businesses can access optimized global payments in over 30 jurisdictions, effectively leveraging their fiat.

Ultimately, Ripples Liquidity Hub lowers the cost of liquidity for customers, maximizing the benefits offered by crypto without the headache of management. This solution really simplifies crypto liquidity management for businesses.

Learn more about Liquidity Hub or get started today.

The availability of Ripples products and services varies by jurisdiction.

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