Ripple has made a significant move by acquiring Hidden Road, which opens new horizons for the use of XRP Ledger in institutional operations.
Expert Note on Hidden Road Acquisition
Jake Claver, Managing Director at Digital Ascension Group, noted that this acquisition represents an underestimated development in blockchain infrastructure. He reported that Hidden Road processes over $3 trillion in annual clearing volume across various financial products. Now, these flows will be directed straight to the XRP Ledger.
XRPL Advantages for Institutional Clients
Claver highlights three main drivers for migration to XRPL: speed, cost, and risk. Unlike traditional financial systems, XRPL offers near-instant transaction finalization, which is crucial for high-frequency traders. Equally important are the low fees on XRPL, significantly reducing the financial burden.
Impact on Demand for XRP and RLUSD
Claver noted that every transaction through XRPL requires the use of XRP, and with Hidden Road transitioning operations, an increase in demand for this cryptocurrency is expected. Additionally, the use of RLUSD will further solidify the positions of XRP and RLUSD in the market.
Ripple's acquisition of Hidden Road represents a crucial step towards institutional blockchain adoption, with significant potential for XRP growth and its integration into financial operations.
