 ▲ Source: @Xfinancebull X |
Ripple’s new strategy to expand beyond a payment network into institutional financial infrastructure has been unveiled, raising the possibility that the role of XRP could significantly grow.
According to cryptocurrency media outlet Bitcoinist on March 7 (local time), Ripple recently presented a “digital prime broker” model aimed at building institutional trading infrastructure in a newly released white paper. The model is designed to enable institutional investors to access the digital asset market more efficiently based on the XRP Ledger (XRPL).
Under this model, the prime broker provides on-chain credit lines to brokers and market makers, allowing them to utilize liquidity even before the standard net settlement cycle. Ripple explained that XRPL supports early settlement within this structure and is designed to handle settlement and funding costs transparently.
Additionally, a “permissioned DEX” for institutional trading has been activated on the XRP Ledger. This system offers authentication features that restrict eligible participants on the network, enabling trading within regulated environments. Through this framework, institutional investors can participate in blockchain-based trading while meeting KYC and AML requirements.
Last year, Ripple acquired prime brokerage platform Hidden Road and has since established the Ripple Prime infrastructure. The platform operates as a multi-asset trading infrastructure providing institutional clients with brokerage, clearing, and financing services.
Recently, Ripple began offering crypto derivatives trading to Ripple Prime clients through Coinbase Derivatives. The products include futures contracts for Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL). These contracts are regulated by the U.S. Commodity Futures Trading Commission (CFTC) and are available for 24-hour trading. As of the time of writing, XRP is trading at approximately $1.36.
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