Cryptocurrency expert X Finance Bull has highlighted Ripple’s modern whitepaper that highlights plans to operate XRP in its premium brokerage offering. Ripple recently announced plans to provide its institutional clients with access to XRP derivatives on Coinbase derivatives.
The role of XRP in Ripple’s modern Digital Prime Broker model
In Post XX Finance Bull stated that XRP is now more than just payments as it expands into institutional trading infrastructure Ripple’s Prime Broker Model. He added that payments are just the beginning for the altcoin and that it is the next level for XRP, which the expert believes will create modern demand. The expert also pointed out that this could boost the price of XRP in the long run, while admitting that in the compact term the price may still stagnate.
The modern Ripple official document introduces the Prime Broker model, which aims to improve the processes of institutional clients’ access to the cryptocurrency market. Crypto noticed that XRP Ledger (XRPL) can support early settlement with Digital Prime Brokerage. This can be achieved by providing on-chain credit lines that fund settlement ahead of the standard net settlement cycle, with funding costs clearly and transparently identified.
Ripple said that under the Prime Broker model, the master broker provides on-chain credit lines to brokers and market makers. These lines of credit allow participants to access liquidity prior to the standard net settlement time. As the company proposes to bring these institutional clients on-chain, it is worth noting that the XRP Ledger has been activated DEX allowed.
Permitted DEX on the XRP ledger allows these institutional clients to trade in a regulated environment while limiting who they transact with on the network through authentication features, thus ensuring appropriate KYC and AML controls. Meanwhile, the payments company already boasts the infrastructure to implement this Prime Broker model, having acquired the Prime Brokerage platform Hidden path (now Ripple Prime) last year.
Access to cryptocurrency derivatives
Ripple announced that it now offers its Ripple Prime customers access to cryptocurrency derivatives on Coinbase, which Nodal Clear will clear. These derivatives include Bitcoin, Ethereum, XRP, and Solana futures. Coinbase also offers American perpetual futures contractswhich expands the offer for Ripple customers.
Moreover, these futures contracts are regulated by the CFTC and are available 24/7, providing institutional clients with 24/7 access. As a futures contract seller (FCM), Ripple Prime may facilitate the implementation of these offers without the involvement of third parties. As a multi-asset brokerage platform, Ripple Prime continues to expand its cryptocurrency offerings. Last month, the company added support for Hyperliquid, giving institutional clients access to on-chain derivatives.
At the time of writing, XRP is trading around $1.40, down over the past 24 hours, according to data from CoinMarketCap.
Featured image from iStock, chart from Tradingview.com
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