Ripple Debuts Spot Prime Brokerage for US Market

Ripple is launching digital asset spot prime brokerage capabilities for the United States market.

With this launch, the company’s U.S.-based institutional clients can now carry out OTC spot transactions using dozens of digital assets, the blockchain company said in a Monday (Nov. 3) news release.

The release notes that this launch follows Ripple’s acquisition of multi-asset prime brokerage, Hidden Road. Ripple has since combined its licenses with Hidden Road’s solutions, under Ripple Prime, letting institutions access foreign exchange (FX), digital assets, derivatives, swaps and fixed income.

“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,” said Michael Higgins, international CEO, Ripple Prime.

Ripple announced in another Monday press release that it acquired digital asset wallet and custody company Palisade and that this move will expand Ripple’s custody capabilities to serve the core needs of FinTechs, crypto-native firms and corporates.

Palisade’s wallet-as-a-service technology, which is designed for easy integration and quick movement of value, will provide an out-of-the-box solution for customers who have high-speed use cases, Ripple said in the release.

“The combination of Ripple’s bank-grade vault and Palisade’s fast, lightweight wallet makes Ripple Custody the end-to-end provider for every institutional need, from long-term storage to real-time global payments and treasury management,” Ripple President Monica Long said in the release.

The company said in the release that in addition to Palisade, it has acquired Hidden Road, Rail and GTreasury this year.

Ripple announced plans in April to acquire Hidden Road for $1.25 billion. The acquisition closed last month, per the company’s other Monday press release.

“For the crypto industry to achieve the next phase of growth, it’s critical that core infrastructure is in place for institutional adoption; prime brokers bring the necessary credibility and professional trading services expected in legacy finance to digital assets,” the company said at the time.

“Together, Ripple and Hidden Road are bringing the promise of digital assets to institutional customers at scale, bridging traditional finance and decentralized finance.”

Before this deal, Hidden Road was clearing $3 trillion per year across markets with more than 300 institutional customers. The combination with Ripple was aimed at turning the brokerage into the largest nonbank prime broker in the world.

In other Ripple news, the company announced last week that three nonprofit organizations focused on development and humanitarian efforts — World Central Kitchen, Water.org and Mercy Corps Ventures — are using its payment solution and its stablecoin.

“Our partners and customers are redefining how urgent aid, sustainable development and financial support reach those who need it most,” Ripple President Monica Long said in a news release.

The company says its Ripple Payments, which was once known as RippleNet, allows businesses to leverage blockchain easily for faster, cheaper and more efficient cross-border payments. It now has 64 active licenses and money transmitter licenses, and is awaiting permissions from another 11 jurisdictions.