In a strategic move to enhance accessibility for US investors in the cryptocurrency landscape, Ripple has unveiled its innovative digital asset prime brokerage services. This new functionality was announced on Monday, aiming to cater to the increasing demand for cryptocurrency solutions.
This service enables US institutional investors to carry out over-the-counter (OTC) spot transactions with a variety of digital assets, including XRP and the newly introduced dollar-backed cryptocurrency, RLUSD.
Ripple’s Enhanced Services for Institutional Investors
Ripple’s recent launch is a result of its acquisition of Hidden Road, merging regulatory insights and services. Ripple Prime now offers institutions comprehensive access to foreign exchange (FX), digital assets, derivatives, swaps, and fixed income products.
This acquisition is strategically aligned with Ripple’s goal to promote digital assets within institutional frameworks, especially given the favorable regulatory shift observed during the recent Trump administration.
The RLUSD has recently been given a green light under the GENIUS Act, a stablecoin-related legislation signed into law earlier this year. This validation is expected to build institutional trust and facilitate RLUSD’s integration into traditional financial systems. According to Michael Higgins, the International CEO of Ripple Prime, the launch of these OTC capabilities signifies:
This service expansion enhances our existing suite of services and positions us to optimize our offerings for US institutions to meet their trading objectives effectively.
Ripple Prime allows its clients to cross-margin OTC spot transactions with wider digital asset holdings, including OTC swaps and futures and options from the Chicago Mercantile Exchange (CME).
In addition, Ripple is actively pursuing a national bank charter license in the US, placing the company among others like Coinbase, Circle, and Paxos, who are pioneering the integration of cryptocurrency and conventional finance.
Upcoming XRP ETFs on the Horizon
In the world of exchange-traded funds (ETFs), market analyst Nate Geraci has predicted the launch of the first spot XRP ETFs in the coming weeks. This follows a five-year legal battle between the SEC and Ripple that wrapped up just three months ago. Geraci views the arrival of spot XRP ETFs as a potential milestone, possibly signaling the decline of previous regulatory resistance against cryptocurrency.
Currently, eight XRP ETFs have been registered with the Depository Trust & Clearing Corporation (DTCC), indicating these funds are in the operational pipeline and primed for potential trading opportunities.
As of now, XRP is priced at $2.41, reflecting a decrease of 4.5% within the last 24 hours and a decline of over 8% in a week.
Image courtesy of DALL-E; chart provided by TradingView.com
