Ripple Launches 'Ripple Prime' Following $1.25 Billion Acquisition of Hidden Road
Ripple has officially launched 'Ripple Prime' as part of its strategic expansion in the payment services sector. This development follows the finalization of the $1.25 billion acquisition of Hidden Road, a prime brokerage firm. Initially announced in April, the acquisition required regulatory approval, which has now been secured. Ripple describes this milestone as an "exciting new chapter" in its journey to becoming the first cryptocurrency company to operate a global, multi-asset prime broker.
Expansion of Payment Services with Ripple Prime
According to Ripple's blog post, the integration of Hidden Road into Ripple Prime aims to provide institutional customers with enhanced access to digital assets. Ripple plans to leverage its existing digital asset infrastructure, including XRP, crypto custody, and stablecoin services, to complement Ripple Prime offerings. The company also intends to utilize blockchain technology to streamline operations and reduce costs.
Ripple has been actively expanding its operations this year, as highlighted by its recent $1 billion acquisition of GTreasury and the acquisition of stablecoin platform Rail in August.
Impact on RLUSD Stablecoin
The introduction of Ripple Prime is expected to significantly enhance the utility and reach of the RLUSD stablecoin. Ripple indicated that RLUSD is already being used as collateral for certain prime brokerage products and anticipates increased adoption in the coming months. The stablecoin has been praised for its regulatory compliance, earning an 'A' rating from Bluechip for stability and governance.
Ripple's partnership with the Bank of New York Mellon Corporation (BNY) as the primary reserve custodian for RLUSD further underscores its commitment to institutional standards. TechCrunch founder Michael Arrington endorsed Ripple Prime, stating that the platform offers "incredible tools" for hedge funds and describing the Hidden Road acquisition as Ripple's best to date.