Ripple acquires Hidden Road for $1.25 billion and begins offering OTC swaps to institutions in the US, overcoming long-standing market limits.
Launch of OTC Swaps in the US
Ripple, following the purchase of Hidden Road, is launching its OTC swaps, providing institutional traders access to a previously unavailable market. As noted by Michael Higgins, International CEO of Hidden Road: "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."
Impact on Major Cryptocurrencies
The launch of Ripple's OTC swaps will impact major cryptocurrencies like BTC and ETH through cash-settled swaps. Ripple's market entry may increase trading volumes while providing regulated insights into previously restricted areas.
Anticipated Effects on the Market
The anticipated effects could reshape institutional trading. Historical trends suggest improved liquidity in other regions, alongside broader adoption. Ripple's strategy aligns with U.S. regulatory compliance, fostering safer environments for digital asset engagement.
With the launch of OTC swaps, Ripple opens new opportunities for institutional traders in the US, which could significantly alter the landscape of the cryptocurrency market.
