The digital asset infrastructure provider Ripple is gradually actualizing its vision of becoming a powerhouse for institutional liquidity flows. The firm’s recently acquired prime brokerage platform, Hidden Road, has launched a crypto over-the-counter (OTC) service for institutions in the U.S.
According to an official release from Hidden Road, the brokerage will enable U.S. institutional clients to settle OTC swaps across leading cryptocurrencies with cash.
Hidden Road to Service U.S. Institutions
Institutions often use OTC trades to execute large transactions privately rather than on exchanges, aiming to prevent huge price swings on open markets.
Hidden Road stated that its Financial Conduct Authority-regulated United Kingdom arm, Hidden Road Partners CIV UK Ltd., will handle the operations of the new OTC Swaps product alongside several crypto cross-margining and financing services.
Michael Higgins, International CEO and Global Head of Corporate Development for Hidden Road, remarked: “The United States digital asset market has long been under-served from a product standpoint. While OTC swaps represent a significant portion of digital asset trading volumes globally, until now, they were largely unavailable to U.S. institutions.
With the launch of our swap prime brokerage capabilities for the United States market, we can provide clients with access to an expanded range of products and solutions.”
Ripple’s Strategic Move
The announcement of Hidden Road’s OTC service comes less than two months after Ripple announced its acquisition of Hidden Road for a substantial $1.5 billion. Although the deal is expected to finalize in the coming months, Ripple’s significant balance sheet will support Hidden Road in expanding its capacity and services. The brokerage aims to become one of the largest non-bank prime brokers worldwide.
While the news of Ripple’s $1.25 billion acquisition circulated early last month, CryptoPotato reported that the move transcends mere corporate strategy, focusing on establishing a pipeline for institutional flows into the XRP Ledger (XRPL) and the network’s native asset, XRP.
Market experts have further explained that this acquisition will enable Ripple to broaden the XRP ecosystem from handling retail remittances and enterprise payments to incorporating institutional treasury flows and liquidity management. With Hidden Road processing at least $3 trillion in volume annually for over 300 top market makers, hedge funds, and trading firms globally, Ripple is poised to evolve its payment ecosystem.
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