Ripple Launches Crypto Spot Prime Brokerage for US Clients
In the latest cryptocurrency news, blockchain giant Ripple has announced the launch of its digital asset spot prime brokerage services in the United States. This move aligns with the platform’s wider vision of expanding the reach and accessibility of cryptocurrency solutions. This strategic development empowers US-based institutional clients with the ability to execute over-the-counter (OTC) spot transactions across a diverse array of prominent digital assets, including XRP and RLUSD.
The launch marks a pivotal milestone for Ripple, following its strategic acquisition of multi-asset prime brokerage firm Hidden Road, which has been seamlessly integrated into Ripple Prime. This synergy enables institutions to access a broad spectrum of financial instruments, from foreign exchange and digital assets to derivatives, swaps, and fixed income, thereby solidifying Ripple’s position as a leader in the crypto solutions space.
Unveiling Key Details of Ripple’s Prime Brokerage
Ripple has officially launched its digital asset spot prime brokerage services for US clients. Institutional clients in the US can now execute over-the-counter spot transactions in dozens of top digital assets, including Ripple’s native token XRP and stablecoin RLUSD. Ripple Prime International CEO Michael Higgins stated,
“The launch of OTC spot execution capabilities complements our existing suite of OTC and cleared derivatives services in digital assets and positions us to provide U.S. institutions with a comprehensive offering to suit their trading strategies and needs.”
Notably, this new OTC service is made available through the new platform, Ripple Prime, which is rebranded from Hidden Road. This move enables US clients to cross-margin OTC spot positions with swaps and CME-listed futures and options, providing institutions with greater flexibility in managing their digital asset portfolios.
This development comes as part of the platform’s wider initiatives to expand its reach and services. For instance, recently, Ripple launched its Ripple Payments, extending its global payout coverage.
Ripple’s Hidden Road Acquisition
Earlier this year, Ripple announced its acquisition of Hidden Road in a strategic $1.25 billion deal, marking one of the largest purchases in the crypto sector. This strategic move enables Ripple to become the first crypto company to own and operate a global, multi-asset prime broker. Commenting on the agreement, Ripple CEO Brad Garlinghouse noted,
“We are at an inflection point for the next phase of digital asset adoption – the US market is effectively open for the first time due to the regulatory overhang of the former SEC coming to an end, and the market is maturing to address the needs of traditional finance. With these tailwinds, we are continuing to pursue opportunities to massively transform the space, leveraging our position and the strengths of XRP to accelerate our business and enhance our current solutions and technology.”
Hidden Road boasted a robust business model, clearing $3 trillion annually across various markets and serving over 300 top-tier institutional clients. With Ripple’s substantial financial backing, Hidden Road had positioned itself as one of the largest non-bank prime brokers worldwide. Marc Asch, Founder and CEO of Hidden Road, posited, “Together with Ripple, we’re bringing the same level of trust and reliability that institutional clients are accustomed to in traditional markets — designed and optimized for a digital world.”
XRP Price Continues to Plummet
Despite this remarkable development, the XRP token price continues to dip, reaching $2.41 as of press time. Ripple’s cryptocurrency has seen significant declines of 3.87%, 7.65%, and 19%.
Although the price is down, traders and investors are showing growing interest in the altcoin. This is visible in the $4.1 billion trading volume over the past 24 hours, up by nearly 100%. The community may be using the buy-the-dip opportunity as they remain highly optimistic about XRP’s future.
Typically, similar announcements and service launches tend to boost token prices. However, in this case, the news has failed to elicit a positive response from the XRP price. This lack of reaction raises questions about the market sentiment and the potential impact of the new development on the token.
