Clients access decentralized derivatives through unified risk management and consolidated margins
Ripple Prime added support for Hyperliquid, a decentralized derivatives exchange. The integration lets institutional clients trade onchain derivatives alongside traditional assets. Clients can now cross-margin their DeFi positions with stocks, bonds, and forex through a single platform. This move bridges the gap between traditional finance and decentralized markets for large financial institutions.
Ripple Prime Hyperliquid integration is a high-performance decentralized derivatives protocol. The integration connects institutional clients to onchain derivatives liquidity within their existing prime brokerage accounts. Clients can trade perpetual futures and other derivatives directly on Hyperliquid without leaving Ripple’s platform.
The setup allows institutions to margin their DeFi trades against traditional holdings. A fund can use its bond portfolio as collateral for crypto derivatives positions. This cross-margining capability reduces the capital institutions need to set aside for trading. They manage everything through one counterparty relationship instead of juggling multiple accounts.
Ripple Prime handles the technical complexity of blockchain interactions. Institutions get streamlined access to DeFi markets without building their own infrastructure. The platform maintains centralized risk controls while connecting to decentralized venues.
The integration covers several major asset categories. Here’s what institutions can now manage through Ripple Prime:
Hyperliquid recently expanded beyond crypto to offer perpetual futures on commodities. The exchange now lists gold, silver, and copper contracts. This expansion fits Ripple Prime’s multi-asset approach to institutional trading.
The platform consolidates margin across all these categories. An institution holding $10 million in bonds might use that collateral for $5 million in crypto derivatives. This capital efficiency matters for firms managing large portfolios across multiple strategies.
DeFi venues offer advantages that traditional exchanges can’t match. Hyperliquid operates 24/7 with instant settlement. Trades execute onchain without waiting for clearing houses or settlement windows. Institutional traders get immediate access to their positions and profits.
Liquidity on decentralized exchanges has grown significantly. Hyperliquid processes billions in daily trading volume across its markets. The platform attracted attention by offering deep order books and competitive spreads. Some DeFi venues now rival centralized exchanges for execution quality.
Transparency draws institutions to onchain markets. All trades settle publicly on the blockchain. Firms can verify their counterparty risk in real time. This visibility reduces the trust required compared to traditional over-the-counter markets.
Michael Higgins, Ripple Prime’s International CEO, emphasized the efficiency angle. The integration provides access to innovative trading venues while maintaining institutional-grade controls. Firms can experiment with DeFi strategies without abandoning their existing risk frameworks.
Cross-margining pools collateral across different asset types. A trader deposits $1 million in Treasury bonds and $500,000 in Bitcoin. The platform calculates total portfolio risk and allows leveraged positions based on combined collateral value. This system eliminates the need to maintain separate margin accounts for each asset class.
The approach reduces capital requirements significantly. Traditional setups force institutions to segregate funds for different strategies. A firm trading both bonds and crypto derivatives needs duplicate margin in separate accounts. Unified margining frees up that trapped capital.
Ripple Prime manages the risk calculations across centralized and decentralized positions. The platform monitors exposure in real time and adjusts margin requirements as markets move. Institutions get automated risk management without building custom systems.
Settlement happens differently for onchain versus traditional trades. DeFi positions settle instantly on the blockchain. Traditional trades follow standard clearing timelines. Ripple Prime coordinates these different settlement cycles within the unified margin framework.
Hyperliquid built its own Layer 1 blockchain optimized for trading. The custom infrastructure delivers faster execution than general-purpose blockchains. The exchange processes thousands of transactions per second with sub-second finality.
The platform operates as a decentralized order book exchange. Traders interact with limit orders rather than automated market maker pools. This model provides price discovery similar to traditional exchanges. Professional traders prefer order books for precise execution control.
Hyperliquid launched its native token HYPE in late 2024. The token rose 33% over the past month as trading volume increased. The exchange added prediction markets recently, expanding beyond pure derivatives trading.
The platform avoided venture capital funding and distributed tokens directly to users. This approach built a community-owned exchange rather than an investor-backed startup. Many DeFi users view this structure as more aligned with decentralization principles.
Ripple Prime’s integration represents a shift in how institutions access crypto markets. Earlier approaches required firms to open separate accounts at crypto exchanges. The new model embeds DeFi access within existing prime brokerage relationships.
Major financial institutions are watching these developments closely. Cross-margining between traditional and digital assets could become standard practice. Banks and hedge funds want exposure to crypto derivatives without overhauling their operations.
Regulatory clarity remains uncertain for institutional DeFi participation. Different jurisdictions treat onchain derivatives differently. Ripple Prime operates from the British Virgin Islands, providing flexibility that U.S.-based firms might lack.
The crypto wallet infrastructure supporting these trades has matured significantly. Institutional-grade custody solutions now handle billions in digital assets. Multi-signature wallets and hardware security modules protect large positions from theft.
Competition in this space will intensify. Other prime brokers are likely building similar DeFi integrations. The firm that offers the smoothest experience and deepest liquidity will capture institutional flow.
The Ripple Prime Hyperliquid integration connects institutions to decentralized derivatives through Ripple’s brokerage platform. It lets firms trade onchain while using traditional assets as collateral.
Cross-margining pools collateral across asset types. You can use Treasury bonds as margin for crypto derivatives. This cuts the capital needed for multiple strategies.
Institutions trade forex, bonds, OTC swaps, cleared derivatives, and digital assets. Everything lives in one margin account through Ripple Prime.
Hyperliquid runs 24/7 with instant settlement and transparent onchain execution. The platform handles thousands of trades per second without traditional clearing delays.
No, you access Hyperliquid through your existing Ripple Prime account. One relationship handles everything with unified risk management across all positions.
