The acquisition was deemed a logical step, driven by the synergies between Ripple and Hidden Road, to facilitate the institutional adoption of digital assets which has been on the rise throughout the year in a more favorable regulatory environment under the Trump administration.
Notably, the launch of Ripple Prime is expected to significantly boost the utility and reach of Ripple’s stablecoin, RLUSD. Currently, RLUSD is being utilized as collateral for various prime brokerage products, with certain derivatives clients opting to hold their balances in RLUSD, a trend anticipated to grow in the coming months.
In July, RLUSD was recognized as the top stablecoin for stability, governance, and asset backing by Bluechip, which awarded it an ‘A’ rating. Additionally, Ripple announced that The Bank of New York Mellon Corporation (BNY) will serve as the primary reserve custodian for RLUSD.
As of this writing, XRP has capitalized on these developments, surging toward $2.70 — a 3% intraday increase. However, the altcoin still records monthly losses of 16%, putting it 32% below its all-time high of $3.65 reached earlier this year.
Featured image from DALL-E, chart from TradingView.com
