Ripple continues to expand its stablecoin ecosystem by strategically acquiring Hidden Road and launching RLUSD, opening new opportunities for institutional financing.
Strategic Acquisition of Hidden Road
Ripple has acquired Hidden Road, a leading prime broker managing over $3 trillion annually. This purchase and the launch of Ripple USD (RLUSD) set a new standard in digital finance. RLUSD is the first stablecoin to enable efficient cross-margining between traditional and digital assets.
Institutional DeFi: A New Financial Concept
RLUSD provides banks, asset managers, and hedge funds compliant access to DeFi while ensuring high performance. Hidden Road plans to use RLUSD as collateral in its global services. This marks the first practical application of stablecoins for cross-margining within institutional frameworks, allowing firms to effectively merge trading activities involving derivatives and digital assets.
XRP's Role in the Hidden Road Infrastructure
Although Ripple's blog did not explicitly connect XRP with the Hidden Road deal, experts suggest that XRP's unique position on the XRP Ledger naturally links it to this development. RLUSD strengthens XRP's utility by increasing activity on the XRPL and promoting its adoption as a bridge asset.
With the launch of RLUSD and the acquisition of Hidden Road, Ripple strengthens its position in the world of stablecoins and offers new opportunities for the integration of traditional and digital finance.
