Ripple Labs on Friday announced launch of “Prime Time” after the Hidden Road takeover. The company will change its name to Ripple Prime. The company confirmed the completion of the acquisition, making Ripple Labs the first blockchain payments company to operate as a global multi-asset broker.
How Ripple Prime is expected to improve the usability of RLUSD
The acquisition was considered a logical step, driven by the synergies between Ripple and Hidden Road, aimed at facilitating institutional adoption of digital assets, which have been on the rise throughout the year in a more favorable regulatory environment under the Trump administration.
Ripple’s digital asset infrastructure, which includes payment solutions, cryptocurrency storage and stablecoin serviceswill boost the offer on Ripple Prime. Looking to the future, Ripple Prime plans to leverage blockchain technology to streamline operations and optimize costs.
In particular, the launch of Ripple Prime is expected to significantly expand the utility and reach of Ripple’s stablecoin, RLUSD. Currently, RLUSD is used as a hedge for various prime brokerage products, with some derivatives clients choosing to hold their balances in RLUSD, a trend expected to boost in the coming months.
RLUSD compliance with regulations Under the fresh stablecoin law, the GENIUS Act, already signed by President Donald Trump, is said to have won the trust of institutions, ensuring further integration with established financial operations.
In July, RLUSD was recognized as the best stablecoin for stability, governance and asset security by Bluechip, which awarded it an “A” rating. Additionally, Ripple announced that Bank of Fresh York Mellon Corporation (BNY) will be the primary custodian of RLUSD reserves.
Five major acquisitions in two years
This acquisition is one of five major ones strategic purchases by the blockchain payments company over the past two years, including recent acquisitions of treasury management system provider GTreaury, stablecoin-based payments platform Rail, Standard Custody and Metaco.
Moreover, the company is currently applying for consent to obtain a license to operate a domestic bank in the United States. It joins other companies including Circle (CRCL), Coinbase (COIN), Sony Bank, Paxos and Crypto.com that recently announced their intention to seek approval for this application from the US Office of the Comptroller of the Currency (OCC).
At the time of writing, XRP took advantage of these developments with a piercing rally towards $2.70, up 3% on the day. However, the altcoin continues to post monthly losses of 16%, putting it 32% below the all-time high of $3.65 reached earlier this year.
Featured image from DALL-E, chart from TradingView.com
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