Bitstamp, one of the longest-standing cryptocurrency exchanges, has been operating since 2011. With headquarters in Luxembourg and offices in London and New York, it has operated as an ODL (On-Demand Liquidity) exchange since 2018.
Bistamp and On-Demand Liquidity
While RippleNet is Ripple’s global payments network that enables faster, lower-cost payments around the world, ODL allows institutions to use the digital asset XRP to source liquidity in seconds, freeing up capital and guaranteeing the most competitive rates available today. ODL goes through exchanges. A financial institution sends a fiat currency (A) to an exchange, the fiat currency is converted to XRP, then sent to another exchange and the XRP is converted to a different fiat currency (B).
With XRP/EUR and XRP/USD pairs at Bitstamp, the exchange has been facilitating ODL transfers for the United States dollar (USD) and the Euro (EUR). Bitstamp was known to facilitate transfers between these fiat currencies and other currencies like the Mexican peso (MXN), the Philippine peso (PHP), and the Australian dollar (AUD). However, it has been recently revealed that a great deal of volume is going through the EUR/USD corridor via Bitstamp.
Even though the EUR/USD corridor is a highly efficient and liquid one, there seems to be high demand from Ripple’s customers in that corridor, according to Ripple’s CTO David Schwartz. The speed and round-the-clock availability makes ODL attractive, even in these efficient corridors.
Time for GBP
In an announcement on May 27, Bitstamp announced that the pound sterling (GBP) was coming to Bitstamp.
All of the fiat currencies and cryptocurrencies on Bitstamp will get an additional GBP pair, with zero trading fees through 1 September 2020, starting next week. This includes USD, EUR, BTC, ETH, XRP, LTC, and BCH.
Bitstamp is adding GBP trading in the following stages:
1. Transfer-only mode: GBP deposits and withdrawals open on 1 June, but trading will not be enabled yet.
2. Post-only mode: Starting at 7 am UTC on 3 June, you will be able to place and cancel limit orders, but they will not be matched. Therefore, no orders will actually be completed during this stage.
3. Limit-only mode: At 9 AM UTC on 3 June, order matching will start and trades will be executed normally. However, only limit orders will be available.
4. Full trading: Once the order books gather sufficient liquidity, we will enable all order types and card purchases for the new trading pairs as well.
GBP trading pairs will be available worldwide, except in certain US states.
With ODL bringing more volume to Bitstamp it only makes since that the exchange will soon start facilitating ODL for GBP as well.