Could Ripple's Recent Announcement Transform the Future of XRP?
XRP is nearing a significant shift as Ripple launches a prime brokerage for digital assets in the U.S.
Months after the initial announcement regarding the acquisition of Hidden Road, the fintech entity behind XRP has reaffirmed its commitment to the U.S. market by launching a digital asset prime brokerage designed for local institutional clients.
The announcement reveals that these clients will have the capacity to execute over-the-counter spot transactions involving a variety of leading digital assets, including Ripple’s own XRP and the RLUSD stablecoin.
“The introduction of OTC spot execution capabilities enhances our existing array of OTC and cleared derivatives services in digital assets, positioning us to offer U.S. institutions a comprehensive suite tailored to their trading strategies and requirements,” said Michael Higgins, International CEO of Ripple Prime.
It’s worth recalling that the acquisition of Hidden Road was initially announced in April, finalized in October, and subsequently rebranded to Ripple Prime.
Consequently, Ripple has amalgamated its licenses with Hidden Road under this new platform, enabling institutional clients to access various assets, including foreign exchange (FX), digital assets, derivatives, swaps, and fixed income seamlessly.
The initial deal was valued at $1.25 billion, which received considerable praise from the XRP Army due to the underlying asset’s potential. CryptoPotato previously reported comments from WrathofKahneman, an influential XRP supporter, asserting that Ripple’s primary focus on retail remittances and enterprise payments has transitioned towards promising opportunities in institutional treasury flows and liquidity management.
Ripple’s CEO, Brad Garlinghouse, confirmed that the new platform will leverage the XRP Ledger for post-trade settlements on specific transactions, marking it as a major advancement. Moreover, Garlinghouse remarked that this could be a “game-changer” for the asset, its utility, and ultimately its price fluctuations.
Currently, XRP’s market price is a little over $2.40, reflecting a 4% daily decline and an 8% drop since last Monday. Analysts are predicting a significant price movement soon, weighing the possibility of a decline to $2.00 against a potential breakout.
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