As Ripple (XRP) intensifies its attack on the DeFi market, the acquisition of 'Hidden Road' is drawing attention. Brad Garlinghouse, Ripple's CEO, recently emphasized the strategy of attracting Wall Street and institutional investors through Hidden Road, stating that this will break down the barriers between traditional finance and digital asset markets.
Hidden Road is more than just a prime broker; it is a 'one-stop channel' that encompasses institutional access to digital assets, derivatives, and swaps. Garlinghouse explained, "Previously, hedge funds or market makers had to go through JPMorgan or Goldman Sachs, but now they can directly enter the digital financial world through Hidden Road." This means Ripple has positioned Hidden Road as the key link connecting Wall Street and DeFi.
Hidden Road, with its capital strength and financial soundness, is considered the core infrastructure for Ripple's future digital asset solution expansion strategy for enterprises. Garlinghouse stated that this is just the beginning and predicted that more prime brokers will participate in the DeFi market.
Simultaneously, Ripple drew market attention by moving 35 million XRP worth approximately $108 million in a single transaction. According to the tracking platform XRP Wallet, this asset movement is an internal transfer, interpreted as a strategic measure for operating ETPs, trusts, and other investment products. Previously, the movement of over 600 million XRP was also revealed to be an internal transaction with similar purposes.
Moreover, Ripple plans to use its newly established stablecoin RLUSD as a key liquidity means in its ecosystem. Through synergy with Hidden Road, by setting XRP as a payment asset and RLUSD as collateral, the entry barrier for institutions into the DeFi market will be further lowered. This is expected to not only strengthen XRP Ledger's physical-based utility but also help establish Ripple's global payment infrastructure.
Meanwhile, XRP has been showing a steady trend, trading around $3, even amid recent volatility. Experts assess that Ripple's structural expansion and enhanced financial service capabilities for institutions could serve as a positive signal for long-term XRP demand.
As Ripple shows an active approach at the intersection of traditional and digital finance, the Hidden Road acquisition is becoming a strategic turning point beyond simple corporate expansion, aiming for DeFi leadership. It is evaluated as an event that could change the long-term market landscape, signifying entry into substantive financial governance beyond mere technology.
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