Key Insights:
- Ripple Prime provides institutional-grade clearing and risk management; Hidden Road clears ~$3 trillion annually.
- RLUSD is 1:1 dollar-backed with segregated reserves, an “A” rating and BNY Mellon custody. Ripple’s compliance-first strategy targets institutional clients demanding audited reserves and regulated custody.
In a major Ripple news development, the company announced in April 2025 that it would acquire prime broker Hidden Road for $1.25 billion.
The deal, now completed under the name Ripple Prime, makes Ripple the first crypto firm to run a global, multi-asset prime brokerage.
Executives say this move will bolster institutional confidence in Ripple’s new enterprise stablecoin, Ripple USD (RLUSD).
Ripple News: Prime Brokerage Infrastructure Fuels RLUSD Trust
In Ripple news, analysts say the Hidden Road deal is a major step for Ripple’s institutional push.
Hidden Road is a non-bank prime broker that cleared more than $3 trillion in trades last year. They did this for over 300 institutional clients.
Now it’s rebranded as Ripple Prime. The platform provides a one-stop shop for clearing, financing and risk management across FX, digital assets, derivatives and fixed income.
Ripple emphasizes that the setup is “conflict-free” with robust governance and regulated custodial partners.
CEO Marc Asch said the integration will bring “the same level of trust and reliability that institutional clients are accustomed to in traditional markets” to the crypto sector.
Ripple is injecting additional capital and licenses into the platform, and its volume has reportedly tripled since the acquisition was announced.
Stablecoin Anchors Institutional Trust
In more Ripple news, the company provided details on its RLUSD stablecoin. The token is issued on both the XRP Ledger and Ethereum. It is fully backed 1:1 by U.S. dollar cash and equivalents held in segregated reserve accounts.
Ripple says this structure ensures RLUSD is always redeemable at par with the dollar, with “no reservations” about its reserves.
An independent audit firm gave RLUSD an “A” rating for reserve backing and governance. The company also named Bank of New York Mellon as the primary custodian of the RLUSD reserves. This move is aimed at reassuring regulators and large financial clients.
In Ripple news reports, it was noted that several institutional trading desks have started holding RLUSD as collateral in cleared trades.
Ripple Prime says this makes RLUSD
“the first stablecoin to enable efficient cross-margining between the digital asset space and traditional markets.”
In practice, RLUSD can settle trades across crypto and FX using a single pool of capital. Observers say that managing the stablecoin within a regulated clearinghouse framework should reinforce confidence. In fact, institutional users see RLUSD being managed within a familiar environment.
The combined on-chain collateral and legacy clearing network form a hybrid model intended to deliver greater transparency and oversight.
Stablecoin Context: RLUSD vs USDC and USDT
Industry analysts see the Hidden Road tie-up as a major Ripple news event. It underscores the firm’s compliance-first strategy in the stablecoin space.
Circle’s USDC and Tether’s USDT remain the two dominant dollar stablecoins. Each with tens to over a hundred billion dollars in market value.
Industry ratings give USDC a B+ for economic safety and USDT a D, reflecting concerns about their reserve transparency and audit practices.
Both USDC and USDT claim full USD backing but have relied on offshore banks and periodic attestations.
By contrast, Ripple markets RLUSD as an enterprise-grade stablecoin with full 1:1 backing, daily audits and custody by regulated financial institutions.
Ripple says its goal is not to immediately match the retail volumes of those tokens, but to win business from institutions that demand fully audited reserves and strong governance.
In Ripple news releases, the company highlights a blend of crypto settlement and legacy financial safeguards.
In addition to Bank of New York Mellon’s custody commitment, the company notes that it holds more than 60 regulatory licenses worldwide, a footprint built through years of engagement with banks and regulators.
The firm has expanded into custody services (via Metaco) and treasury operations, signaling its focus on meeting institutional compliance needs.
Ripple says if executed as planned, the strategy would leave RLUSD under regulated custodianship and a SOC 2‑certified prime broker – a stark contrast to many retail stablecoins.
Industry experts say this story could become top Ripple news if RLUSD’s hybrid model wins broad acceptance among institutional clients.