Ripple Expands OTC Crypto Swaps for US Institutions

Ripple Introduces OTC Crypto Swaps to US Institutions

Lede

Opening US access to OTC swaps is significant, offering regulated paths for institutional traders amid longstanding market limits.

Quote

“The United States digital asset market has long been under-served from a product standpoint. While OTC swaps represent a significant portion of digital asset trading volumes globally, until now, they were largely unavailable to U.S. institutions.” – Michael Higgins, International CEO, Hidden Road

Nut Graph

Ripple, after purchasing Hidden Road for $1.25 billion, launches its OTC swap services. Michael Higgins, International CEO of Hidden Road, confirms US institutions now have access to a previously underserved market.

Impact on Major Cryptocurrencies

This launch impacts major cryptocurrencies like BTC and ETH through cash-settled swaps. Ripple’s market entry may boost trading volumes, while providing regulated insights into previously restricted areas.

Market Participation

Ripple’s move promises enhanced liquidity and vital market participation, potentially affecting major institutional trade volumes. Regulatory clearance marks a notable shift for high-volume trades in the crypto space.

Anticipated Effects

Anticipated effects could reshape institutional trading, with historical trends showing improved liquidity in other regions, alongside broader adoption. Ripple’s strategy aligns with US regulatory compliance, fostering safer environments for digital asset engagement.