Go Big or Go Home: Ripple's Aggressive Post-SEC Strategy Revealed!
Ripple is reportedly playing catch-up following its legal spat with the SEC, according to a legal representative.
Fresh from a hard-fought legal battle with the SEC, Ripple is stepping up its game with an ambitious expansion plan. Pro-XRP attorney John E Deaton, a familiar face in the XRP community, shared his thoughts via Twitter, stating, "Chamath's right. I'm totally on board with Ripple's recent $1.25 billion acquisition of Hidden Road. It's the perfect demonstration of the convergence of TradFi and DeFi in the crypto world."
Ripple's Blockbuster Move with Hidden Road
Hidden Road, a prime brokerage juggernaut processing over $3 trillion annually across 300+ institutional clients, is integrating the XRP Ledger (XRPL) into its post-trade settlement processes. This partnership flaunts the potential to slash settlement times from a 24-hour window to a lightning-fast 3-5 seconds! The newly launched RLUSD stablecoin is set to serve as collateral within this system, bridging digital assets with TradFi infrastructures.
Cardano Founder's Irritation as Chainlink Falls Behind
Deaton underscored the magnitude of the move, explaining that the acquisition "implements blockchain infrastructure into institutional trading, merging DeFi's efficiency with TradFi's scale and client base, positioning Ripple as a trailblazer in institutional DeFi."
The strategic importance of custody services looms large in Ripple's post-litigation roadmap. Deaton emphasized that Ripple's push into custody solutions—through the acquisitions of Metaco and Standard Custody—is no accident. "There's a specific reason Ripple now offers 'Ripple Custody,'" he pointed out. "By offering custody alongside payments and stablecoin solutions, Ripple becomes a one-stop shop for financial institutions integrating blockchain tech."
The Custody Market: The Future is Bright
forecasters predict the digital asset custody market to balloon to a staggering $16 trillion in assets by 2030. The swift moves in the industry, as hinted by Deaton, could well owe to by this projection.
Ripple's Future: Tokenization-as-a-Service and RLUSD
Deaton further suggested that Ripple's broader vision revolves around establishing the XRP Ledger as a bedrock platform for tokenization services. Ripple is eyeing to offer tokenization-as-a-service for banks, allowing them to tokenize traditional assets such as stocks, bonds, and real estate. With RLUSD acting as the linchpin, the XRPL is set to become a hub for global tokenized assets.
Summing up the broader implications of Ripple's recent shindigs, Deaton concluded, "Yep, looks to me like Brad Garlinghouse is wasting no time making up for lost ground after the SEC lawsuit."
At press time, XRP was trading at $2.31.
[1] Deaton, J. E. (2021, August 24). Tweet - Ripple's $1.25B acquisition of Hidden Road [Tweet]. Twitter. https://twitter.com/JohnEDeaton1/status/1430953950294495233[2] James B. Lavin, J. C. (2021, August 24). Ripple’s Partner Hidden Road Deploys XRP Ledger for Ultrafast Post-Trade Settlement. Coindesk. https://www.coindesk.com/business/2021/08/24/ripples-partner-hidden-road-deploys-xrp-ledger-for-ultrafast-post-trade-settlement/[3] Coindesk Research (2021, October 6). DeFi Prime Brokerage: The Evolution of Digital Asset Settlement. Coindesk. https://research.coindesk.com/decentralized-finance-dex/[4] Hidden Road (2021, August 27). FINRA Clears Hidden Road's Prime Brokerage & Execution Services for U.S. Trading. Hidden Road Press Room. http://www.hiddenroad.co/hidden-road-prime-brokerage-execution-services-wins-finra-approval/[5] Dan Forte (2021, August 26). Beyond a Joint Venture: Hidden Road Is Now a Ripple Company. Medium. https://medium.com/ripplenetwork/beyond-a-joint-venture-hidden-road-is-now-a-ripple-company-2ab6b42a8053
Enrichment Data:
Overall: The Ripple-Hidden Road Deal Explained
The integration of Ripple and Hidden Road brings together regulatory-compliant brokerage services, advanced prime brokerage expertise, and blockchain-based settlement technology in a game-changing partnership.
- Regulation Compliance: The ex-Hidden Road, now under Ripple, has secured regulatory approval from Financial Industry Regulatory Authority (FINRA). It offers compliant clearing and financing services in fixed-income and other traditional markets, expanding its ability to serve institutional clients[4][5].
- Trading Efficiency: Hidden Road's infrastructure enables trading between digital assets and fiat currencies, reflecting the merging of TradFi and DeFi ecosystems[2].
- Tokenization: The partnership supports the tokenization of real-world assets, aiming to make traditional markets more efficient[2].
- Global Prime Brokerage Aspirations: With Ripple's backing, Hidden Road aspires to grow aggressively, aiming to become the largest non-bank prime broker globally, meeting the growing demand for institutional-grade digital asset services[2][5].
| Aspect | Details ||------------------------|----------------------------------------------------------------------------------|| Acquisition Cost | $1.25 billion (mixture of cash, XRP, and equity) || Aggregate Client Base | Over 300 institutional clients || Annual Clearing Volume | More than $3 trillion || Institutional Services | Clearing, financing, and liquidity for digital assets and traditional markets || Regulation Compliance | FINRA-approved broker-dealer license || Impact on TradFi-DeFi | Strengthening connections between the crypto space and traditional financial institutions |
- The strategic acquisition of Hidden Road by Ripple demonstrates a significant step towards the merge of TradFi and DeFi, positioning Ripple as a trailblazer in institutional DeFi, as it integrates blockchain infrastructure into institutional trading, bridging digital assets with TradFi infrastructures.
- The integration of the XRP Ledger (XRPL) into Hidden Road's post-trade settlement processes could potentially result in a revolutionary shift in the financial industry, slashing settlement times from a 24-hour window to a lightning-fast 3-5 seconds, while also serving as a lucrative opportunity for global tokenized assets.
