The company behind the XRP cryptocurrency, Ripple, has started allowing U.S. customers to access spot trading for major cryptocurrencies via its Ripple Prime, roughly seven months after announcing plans to acquire prime brokerage platform Hidden Road for $1.25 billion.
According to a Monday blog post, Ripple expanded its institutional services to include over-the-counter (OTC) digital asset spot prime brokerage for US markets. The company can now effectively act as a multi-asset prime broker for crypto traders, offering cross-margin OTC spot transactions and holdings, as well as OTC swaps and CME-listed futures and options.
The company indicated that Prime clients could access “dozens of the most prominent digital assets,” including XRP and its own dollar-backed stablecoin, Ripple USD (RLUSD).
“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 US institutions with a comprehensive offering to suit their trading strategies and needs,” said Michael Higgins, the international CEO of Ripple Prime and former Hidden Road executive, in a statement.
The deal to acquire Hidden Road was announced in April. At the time, Ripple CEO Brad Garlinghouse noted that prime brokers like Hidden Road “have proven themselves as “the trusted intermediary for the largest hedge funds, market makers, OTC desks, quant traders,” adding that Ripple had been a customer of the company for years.
Garlinghouse revealed that after the deal, Hidden Road would use the XRP Ledger for clearing a portion of trades. Moreover, he emphasized Hidden Road’s ability to boost RLUSD’s adoption as a form of collateral across different types of markets and trading strategies.
The acquisition deal was closed last month, merging Ripple’s regulatory licenses with Hidden Road’s prime brokerage infrastructure.
The move comes as Ripple continues to expand its institutional crypto services, which now span payments, custody, trading, and corporate treasury management.
The company has been on a spending spree this year following the conclusion of its protracted lawsuit with the U.S. Securities and Exchange Commission (SEC). Besides Hidden Road, Ripple also recently acquired GTreasury for $1 billion, marking another major milestone for the company.
