financial technology company LMAX Group on Thursday announced a significant partnership with blockchain payments leader Ripple, backed by a $150 million investment from the crypto firm to incorporate the RLUSD stablecoin into LMAX’s payment infrastructure.
Recent trading solutions with Ripple Stablecoin
The RLUSD integration will provide the primary security within LMAX institutional trading as outlined in the document press release on this matter.
This will enable LMAX’s global clientele – banks, brokers and buy-side institutions – to leverage Ripple’s RLUSD to improve cross-collateralization and margin efficiency across a variety of transaction types such as spot cryptocurrencies, futures and contracts for difference (CFDs).
David Mercer, CEO of LMAX Group, emphasized the importance of this partnership, stating:
Collaborating with a leader like Ripple is a milestone for LMAX, reflecting the confidence and momentum of our multi-asset growth strategy. With greater regulatory clarity in the US and globally, fiat stablecoins will be a key catalyst in driving the convergence of established finance (TradFi) and digital assets, and we strongly believe that RLUSD is in a leading position.
He expressed enthusiasm about working with Ripple’s leadership team to develop a “modern financial ecosystem” and end-to-end solution multi-asset market for institutions around the world.
3 main areas of interest of the LMAX Group from RLUSD
Integration RLUSD offers LMAX Group customers a number of benefits. Increased liquidity is one of the benefits, as RLUSD will act as both a hedge and a settlement currency for cryptocurrency spot and fiat transactions.
Additionally, customers will have the option to apply RLUSD as a margin funding source for perpetual futures and contracts for difference, thereby improving margin efficiency.
Security will also be a priority as RLUSD resources will be available through LMAX Custody. This will apply segregated wallets to ensure both fungibility and portability established finance and digital resources.
Moreover, the LMAX Kiosk feature will facilitate the institution’s growth by allowing customers to trade multiple currency and digital products using RLUSD as collateral. This will enable 24/7 access to markets across a variety of assets.
Jack McDonald, Senior Vice President of Stablecoins at Ripple, commented on the recent partnership with LMAX Group, noting:
This partnership will accelerate the apply of RLUSD – already the fifth top five USD-backed stablecoin – in one of the largest and most advanced trading environments.
This cooperation will be further strengthened by the integration of LMAXs digital asset exchange with Ripple Prime. This combination is expected to provide institutions with a streamlined gateway to trading digital assets, while effectively managing market fragmentation and counterparty risk.
At the time of writing, Ripple’s related token, XRP, is trading at $2.09, after falling almost 3% in the last 24 hours.
Featured image from DALL-E, chart from TradingView.com
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