At a recent conference in Singapore, Ripple CEO Brad Garlighouse announced that Ripple’s stablecoin RLUSD will now be accepted as collateral for all services at Hidden Road, a global prime brokerage. According to experts, this move will impact the intersection of crypto and traditional finance.
Ripple‘s focus on high-friction payment routes is the central idea of this integration, as it now allows the institutional players to engage in real-time trading across asset classes with improved capital efficiency.
“Ripple’s stablecoin $RLUSD will be accepted as collateral for all services at Hidden Road. RLUSD is the first stablecoin enabling efficient, large-scale cross-margin trading between virtual assets and traditional markets— with 24/7, year-round availability,” said Garlinghouse.
Garlinghouse recently announced that Ripple will drop it’s cross-appeal in the ongoing legal battle with SEC. Amid this, the platform is actively working on new methods to expand the functionality, adoption, and innovation, as it is melding with emerging blockchain technologies.
Now, the integration of RLUSD has added another feather to its innovation factor, as businesses seek to blend traditional finance with decentralized mechanisms. Ripple has also applied for a national banking license in the US and secured a Federal Reserve master account, positioning itself to use and manage RLUSD directly under federal oversight.
By integrating RLUSD with one of the largest global prime brokerages, Ripple is one step ahead in leading the digital assets arena. Its new partnerships with various institutions will position Ripple as a trailblazer in crypto for other platforms to follow.
Using RLUSD as collateral offers institutional players improved capital efficiency, allowing real-time trading across virtual and traditional assets 24/7. It reduces the need to move funds between platforms, lowers capital requirements, and speeds up trade execution, leveraging RLUSD’s stability and compliance.
Hidden Road, now acquired by Ripple, is a global prime brokerage offering clearing, prime brokerage, and financing across diverse asset classes. Its unique infrastructure supports RLUSD integration by enabling efficient cross-margining between digital and traditional markets, streamlining post-trade activities, and handling over $3 trillion in annual clearing volume for 300+ institutional clients.
Ripple faces challenges in scaling RLUSD for global institutional use, including intense competition from established stablecoins, demonstrating genuine widespread institutional adoption beyond partnerships, and navigating evolving global regulatory landscapes. It also needs to ensure the XRP Ledger can handle massive transaction volumes if it becomes a primary settlement layer.
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