Ripple Prime Expands U.S. Crypto Spot Trading Access

The foundation for Ripple Prime’s expanded capabilities was laid with the company’s $1.25 billion acquisition of Hidden Road in April 2024. Hidden Road, described as a multi-asset prime brokerage, brought established infrastructure and credibility to Ripple’s institutional offerings. Ripple CEO Brad Garlinghouse emphasized the strategic importance of the acquisition on social media platform X, noting that prime brokers like Hidden Road “have proven themselves as the trusted intermediary for the largest hedge funds, market makers, OTC desks, quant traders.” Garlinghouse revealed that Ripple had been a Hidden Road customer for years prior to the acquisition, providing firsthand experience with the platform’s capabilities.

The acquisition represents part of Ripple’s broader spending strategy, with Garlinghouse noting last month that the company has unveiled “5 major acquisitions” in approximately two years. These acquisitions span various financial service areas including custody and corporate treasury management, indicating Ripple’s systematic approach to building comprehensive institutional services. The Hidden Road purchase specifically addresses the growing demand for sophisticated cryptocurrency trading infrastructure among U.S. institutional clients.

Ripple Prime’s newly launched over-the-counter (OTC) spot execution capabilities provide U.S. institutions access to “dozens of the most prominent digital assets,” including XRP and Ripple’s RLUSD stablecoin. According to crypto data provider CoinGecko, these assets had market caps of $142 billion and $1 billion respectively at the time of the announcement. While Ripple’s business has historically focused on XRP’s ecosystem, this expansion makes major cryptocurrencies like Bitcoin, Ethereum, and Solana accessible to the firm’s institutional customer base.

Michael Higgins, Ripple Prime International CEO, explained how the new spot trading services integrate with existing offerings: “The launch of OTC spot execution capabilities complements our existing suite of OTC and cleared derivatives services in digital assets and positions us to provide U.S. institutions with a comprehensive offering to suit their trading strategies and needs.” Beyond cryptocurrency trading, Ripple’s prime brokerage enables institutions to access foreign-exchange trading, precious metals, synthetic assets, and over-the-counter swaps. The platform also supports margin trading, allowing customers to borrow money to trade derivatives and crypto with leverage.

A key aspect of the Hidden Road integration involves leveraging Ripple’s existing technology infrastructure. Garlinghouse confirmed that Hidden Road, under its new ownership, would use XRP Ledger for clearing a portion of trades. This integration represents a strategic alignment between Ripple’s core blockchain technology and its expanded prime brokerage services, potentially driving increased utility for the XRP ecosystem.

Garlinghouse also highlighted Hidden Road’s ability to promote RLUSD’s adoption as a form of collateral across different types of markets and trading strategies. The RLUSD stablecoin, which debuted in December, stands to benefit significantly from increased institutional usage through the prime brokerage platform. By positioning RLUSD as collateral for various trading activities, Ripple aims to establish its stablecoin as a fundamental component of institutional digital asset trading infrastructure, competing with established stablecoins in the cryptocurrency ecosystem.

Ripple’s expansion into comprehensive prime brokerage services comes as the company adapts to what it perceives as a more supportive regulatory environment. The move positions Ripple Prime as a one-stop solution for institutional clients seeking exposure to digital assets through various instruments and strategies. By combining spot trading with derivatives, margin facilities, and traditional asset classes, Ripple aims to capture a significant portion of the growing institutional cryptocurrency market.

The timing of this expansion reflects Ripple’s strategic pivot toward serving broader institutional needs beyond its traditional XRP-focused business model. With combined market caps exceeding $140 billion for the newly accessible assets, Ripple Prime now offers institutional clients exposure to a substantial portion of the cryptocurrency market. This diversification strategy appears designed to reduce reliance on XRP-specific services while capitalizing on the growing institutional demand for comprehensive digital asset trading solutions across multiple cryptocurrency ecosystems.