In a new video, Ripple CEO Brad Garlinghouse discussed the role of prime brokerage in gaining access to digital assets and its significance for institutional investors.
Evolution of Prime Brokerage
In the latest installment of "Crypto In A Minute," Garlinghouse emphasized that prime brokerage services, once dominated by major banks, are changing. New firms are beginning to serve institutional clients by offering a broader mix of assets, including digital tokens.
Hidden Road Acquisition as a Strategic Move
Garlinghouse discussed Ripple's acquisition of the brokerage firm Hidden Road. He noted that asset managers are making trillions of dollars in trades and now have access to digital assets through firms like Hidden Road. "Having a well-capitalized player like Hidden Road allows more institutions to enter these asset classes against a well-capitalized counterparty," Garlinghouse explained.
Bridging Traditional and Digital Markets
Garlinghouse highlighted how the inclusion of digital assets in the services offered by prime brokers represents a critical step toward broader adoption. Services provided by companies like Hidden Road help to break down barriers for institutional investors, enabling them to trade and clear traditional and digital assets seamlessly.
The implementation of new approaches in the financial sector, such as prime brokerage with a focus on digital assets, opens new horizons for institutional investors. Ripple is positioning itself as a key player in this transformative process.
