Ripple Labs Completes Hidden Road Acquisition, Launches Ripple Prime

Blockchain payments firm Ripple Labs Inc. has completed the acquisition of Hidden Road and launched Ripple Prime.

Notably, this makes Ripple the first crypto company to run a global, multi-asset prime brokerage.

The company expects more demand from institutions. The company also plans to connect Ripple Prime with its blockchain services and RLUSD stablecoin.

Ripple Prime Growth After the Hidden Road Acquisition

According to its official publication, Ripple Prime is the new name for Hidden Road after the deal closed.

Ripple Prime gives Ripple a global prime brokerage business. It also brings services for foreign exchange, digital assets, derivatives, swaps, and fixed income.

The company stated that this move will enable more institutions to participate in digital asset markets.

According to the update, Ripple Prime has grown three times since the initial announcement of the plan to acquire Hidden Road earlier this year.

Ripple anticipates that further growth may occur as more institutions adopt these services.

According to the update, the firm views this as a step toward supporting the broader use of digital assets in finance.

In addition, Ripple Labs says there are clear benefits between what it currently offers and what the Prime outfit will do.

It is worth noting that Ripple has services tailored to payments, crypto custody, and stablecoin. Ripple Prime offers services that align well with these areas.

The company mentioned that it plans to utilize blockchain systems in the future to enhance operational efficiency and reduce costs.

Leadership teams are now working together. Hidden Road Founder and CEO Marc Asch is now working with Ripple CEO Brad Garlinghouse.

Meanwhile, both companies have teams with backgrounds in technology and risk controls.

They have offices in several countries, and Ripple noted that both teams are focused on growth during the year.

Ripple also said that this move is part of a larger plan. It has made several other acquisitions in the last two years.

These include Standard Custody, Metaco, Rail, with a new agreement to buy GTreasury. Ripple says each deal has a goal to expand services for institutions.

RLUSD Plays a Larger Role in Prime Brokerage Services

Ripple Labs added that RLUSD now supports several prime brokerage products. It is being used as collateral.

Some customers using derivatives services now hold balances in RLUSD. The company anticipates an increase in its use in the coming months.

The firm disclosed that institutions trust RLUSD because it meets compliance standards.

In July, research group Bluechip gave RLUSD an A rating for stability, governance, and backing. This rating ranked RLUSD as the top stablecoin in its review.

According to the update, the international blockchain payment firm aims to maintain strict oversight of RLUSD.

The Bank of New York Mellon Corporation is the primary reserve custodian. According to the official statement, this helps meet expectations from users and regulators.

More importantly, the company added that Ripple Prime will help the stablecoin reach more markets.

XRP Price Charts Show Signs Of Reduced Selling Pressure

Following the announcement, the XRP price saw an increase. The coin is now trading at $2.49, up 3% in 24 hours. Market charts indicate that the price may attempt to recover further.

Still, the Moving Average Convergence Divergence indicator shows a buy signal. Traders watch for the MACD line to stay above the signal line.

This indicates a greater interest in buying, as the Relative Strength Index is currently around 44. This shows weaker selling pressure, and a rise above the midpoint would show stronger momentum for buyers.

Analysts watch key price levels, noting that a close above $2.50 would support a stronger outlook.

More importantly, other levels to watch include the 200-day Exponential Moving Average at $2.61, the 50-day EMA at $2.69, and the 100-day EMA at $2.74.