Ripple Labs has taken a significant step forward in its institutional-asset strategy with the launch of its US spot prime brokerage service, Ripple Prime.
Announced today, the offering enables US institutional clients to execute over-the-counter (OTC) spot trades in major digital assets, including XRP and RLUSD.
Ripple Prime Broadens Market Access
Less than two weeks ago, Ripple announced the $1.25 billion acquisition of multi-asset prime brokerage Hidden Road.
Now operating as Ripple Prime, the brokerage introduces expanded capabilities that go beyond OTC trading and liquidity provision. It enables cross-margining and financing options that were previously unavailable to many crypto-focused prime brokers.
For institutional participants, the launch enables large off-exchange transactions with reduced market impact and expanded multi-asset margining opportunities. It also provides access to infrastructure specifically designed to meet regulatory and compliance standards in the US market.
For Ripple, the move solidifies a shift that has been steadily unfolding across its ecosystem and client base. XRP and RLUSD are no longer confined to retail trading– they are now entering the arena of institutional finance.
The timing adds significance to the launch, coinciding with a period of heightened stablecoin activity.
RLUSD’s Billion-Dollar Milestone
RLUSD, Ripple’s US dollar-pegged stablecoin, has recently crossed a crucial milestone for the company and the broader crypto industry.
Data from CoinGecko show that RLUSD’s market capitalization has surpassed $1 billion for the first time, marking steady institutional growth. The expansion reflects mounting interest from liquidity providers and regulated entities seeking efficient settlement mechanisms and stable on-chain instruments.
The stablecoin’s deeper integration within Ripple Prime may also open new use cases, such as collateralized lending, cross-border settlements, and DeFi instruments tailored for institutions.
Analyst Paul Barron LSO noted that Ripple’s latest initiative positions it in direct competition with Coinbase Prime and Anchorage.
However, several concerns persist regarding how this acquisition could reshape Ripple’s long-term token utility.
Institutional Growth Raises XRP Utility Concerns
Ripple’s rapid institutionalization could widen the gap between its corporate ambitions and XRP’s real on-chain practicality.
As BeInCrypto previously reported, Ripple’s acquisitions of Hidden Road and GTreasury signal a decisive institutional pivot. Yet these efforts risk leaving XRP with a smaller operational role within Ripple’s expanding financial services portfolio.
Despite its vision of XRP as a global bridge currency, Ripple’s stability still relies heavily on XRP-linked funding and periodic sales. This dependence reframes XRP from a transactional asset into a funding mechanism for Ripple’s broader fintech growth.
How Ripple manages the balance between its institutional ambitions and XRP’s original purpose could shape the token’s long-term relevance in the greater market.
