- Ripple immediately capitalized on its $1.25 billion acquisition of Hidden Road by fusing its capabilities into the Ripple Prime platform.
- The move was part of the blockchain solutions provider’s expansion of its use cases and goal of having a stronger presence in the US market.
Ripple is cashing in on its recent investment. The blockchain solutions provider powered by the XRP Ledger (XRPL) announced that it’s launching Ripple Prime in the US.
Features of Ripple Prime
Ripple Prime is the product of Ripple’s acquisition of Hidden Road for $1.25 billion, which it finalized nearly two weeks ago. The new platform arising from the strategic move integrates Hidden Road’s capabilities.
With that, the platform houses over-the-counter (OTC) spot prime brokerage compatible with crypto assets, including XRP, Ripple USD (RLUSD), and a dozen others. It also unlocks foreign exchange (FX), derivatives, digital assets, swaps, and fixed income access for institutions.
Advantages Unlocked for Ripple and Institutional Clients
Michael Higgins, International CEO at Ripple Prime, highlighted that Ripple Prime complements Ripple’s existing suite of OTC and cleared derivatives services in digital assets. Additionally, it provides leverage for the company as a top destination for US institutions looking to seamlessly integrate digital assets into their existing trading strategies and financial infrastructure.
The milestone marks Ripple’s significant evolution from a cross-border payments-focused blockchain technology solutions provider to an all-around full-service, multi-asset financial ecosystem player. Meanwhile, its absorption of Hidden Road’s transactional inflows could accelerate XRP’s deflationary mechanism, which would in turn boost its valuation.
For institutions, their adoption of Ripple Prime opens them up with ways to use their capital efficiently while streamlining their risk exposure management across a single account.
Ripple’s Hidden Road Acquisition
Ripple’s Hidden Road acquisition was one of the much-discussed developments in the crypto industry last month. After all, it is one of the largest deals in the digital assets space to date. Many analysts saw the maneuver as a potential counter to BlackRock’s tokenized funds, which let Ripple offer end-to-end services from custody to clearing.
The former Hidden Road brings with it its accolades as it transitions to Ripple Prime. The company carries the distinction of clearing over $3 trillion in transactions annually across markets. It also boasts over 300 institutional customers.
Furthermore, its bragging rights include alignment with US regulations. It likewise possesses certifications from independent bodies for SOC 2 (Systems and Organization Controls 2) Type II and Cyber Essentials compliance.
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