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What happened?
Hidden Road, a prime broker owned by Ripple, has launched an over-the-counter (OTC) crypto swaps product for U.S. institutional investors. This new service allows institutions to conduct cash-settled crypto swaps privately across numerous digital assets. The launch of this product marks one of the first instances where such services are made available to U.S. institutions by a broker.
Who does this affect?
This development primarily affects U.S. institutional investors looking to engage in crypto trading without impacting market prices. Hidden Road’s OTC swap service provides these entities with a platform to manage large transactions more discreetly. Additionally, the broader financial industry may see increased participation from institutions that previously had limited access to such crypto trading opportunities.
Why does this matter?
The introduction of OTC crypto swaps by Hidden Road can significantly impact the market by increasing institutional participation in the crypto sector. With institutional OTC volumes having grown substantially in 2023, this development is likely to further drive adoption and liquidity in the crypto markets. Moreover, Ripple’s strategic move positions it as a leading player bridging traditional finance with the decentralized ecosystem, potentially reshaping competitive dynamics within the financial market.
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