Ripple announced that Ripple Prime, its institutional prime brokerage platform, has enabled support for Hyperliquid, the leading and popular DeFi derivatives protocol.
This move will allow institutional clients to access on-chain derivatives liquidity while cross-margining DeFi positions with traditional assets and activities through OTC swaps and cleared derivatives.
This integration is noteworthy as Hyperliquid, along with its HYPE token launched in late 2024, took the cryptocurrency market by storm as one of the only alternatives to gain recognition from Ripple and resist Bitocin’s recent downturn.
What Ripple’s Support for Hyperliquid Means
The move is part of Ripple’s broader strategy to bridge traditional finance and decentralized markets, providing institutions with counterparty relationships with centralized risk management.
For Hyperliquid, Ripple Prime support is verified based on market capitalization and institutional presence by one of the largest altcoins in the cryptocurrency market. Hyperliquid is a darling of DeFi natives, and this partnership in a way brings together two different sections of the cryptocurrency investor world.
Making the HYPE token accessible through a regulated prime brokerage gives Hyperliquid exposure to institutional traders who were previously unable to participate directly in DeFi protocols and tokens. Through this partnership, XRP investors will also be exposed to Hyperliquid.
Hyperliquid’s HYPE token has demonstrated resilience during Bitcoin’s recent downturn, signaling confidence in the protocol’s fundamental principles and long-term vision as the backbone of cryptocurrency DeFi.
HYPE’s performance was also something Bob Diamond, Chairman of Strategies at Hyperliquid and former CEO of Barclays, mentioned in Bloomberg.
Increased institutional interest through Ripple could deepen liquidity for HYPE and further solidify Hyperliquid’s role as a leading DeFi protocol.
For Ripple, the integration could boost Ripple Prime’s position among DeFi-oriented investors, especially as a gateway between TradFi and DeFi.