After completing the acquisition of Hidden Road, a fast-growing non-bank prime broker, Ripple changed its name to Ripple Prime.
With this acquisition and rebrand, Ripple becomes the first cryptocurrency company to own and operate a multi-asset prime brokerage that connects traditional finance and digital assets under one roof.
Ripple Prime offers institutional clients an integrated suite of services including clearing, financing, derivatives, and swaps, all powered by Ripple’s XRP Ledger infrastructure with stablecoin integration. Let’s take a look at how Ripple Prime works.
Leveraging the XRP Ledger for Institutional Integration
Ripple Prime will combine Ripple’s leadership in blockchain-based payments, stablecoin issuance and storage with the use of the platform as a primary intermediary, positioning Ripple Prime as a possible sustenance player for the Ripple ecosystem outside of XRP.
One of the benefits of Ripple Prime is the ability to utilize the XRP Ledger to streamline financial operations. XRP Ledger’s speed, scalability, and low transaction costs make it ideal for institutional-level settlement and liquidity management.
Ripple writes about XRP integration:
The synergies between the two companies make this acquisition the logical next step to support institutional adoption of digital assets. Ripple’s underlying digital asset infrastructure across payments, cryptocurrency storage, stablecoins, and XRP usage will complement the services offered within Ripple Prime.
Ripple Prime can leverage the ledger to facilitate instant cross-border payments and gain access to on-chain RLUSD.
As Ripple further integrates blockchain technology into key brokerage workflows, XRPL can underpin tokenized collateral and programmable finance, allowing institutions to automate traditionally manual processes.
This integration not only optimizes costs but also improves transparency by taking actions on-chain. Hidden Road is known as a traditional platform. Now that the service has been integrated into Ripple, it serves as an advertisement for just how powerful the cryptocurrency is becoming and why TradFi should be paying attention.
Could RLUSD become the institutional backbone of Ripple Prime?
Ripple Prime’s primary asset is RLUSD, Ripple’s US dollar-backed stablecoin. Currently, RLUSD is used as collateral across a variety of prime brokerage products, and several derivatives clients already hold RLUSD balances.
RLUSD quickly gained the trust of institutions due to its transparency and connection to Ripple, which in turn connects it to several banks and institutions around the world. The stablecoin is set to compete with Trump-backed World Liberty Financial’s USD1, Circle’s USDC, and Tether’s USDT and USAT.
In the near future, RLUSD could play a more central role within the Ripple Prime ecosystem. By using RLUSD for collateral, settlement, and liquidity management, institutions can bypass the inefficiencies of traditional fiat solutions. Everything could be a lot easier.
Ripple Prime represents a strategic evolution of Ripple’s mission to bring blockchain technology to the center of global finance and create an Internet of Value.
Together with the XRP Ledger and RLUSD, Ripple Prime is providing institutions with a secure, compliant, and efficient bridge between traditional and digital markets with advantages hard to find elsewhere.