Ripple Prime, the brokerage arm of Ripple, has launched a new service allowing institutional clients to trade swaps tied to over 100 stock, commodity, and currency markets 24/7. The service uses Ripple’s RLUSD stablecoin as collateral, enabling clients to bet on assets like gold and oil even when traditional markets are closed. Trading firm Virtu is already utilizing the service, which tracks perpetual futures listed by Trade.xyz on the Hyperliquid exchange.
HSBC has described the offering as "evolutionary, not revolutionary," cautioning that limited liquidity could hinder large trades. Daragh Maher, head of digital assets research at HSBC, noted that the market is still small compared to traditional finance markets. He emphasized that the product’s strength will grow once there is sufficient depth for investors to manage risk during market closures.
The risks of weekend trading were highlighted when nearly $52 million in leveraged chip-stock positions were liquidated within 10 minutes. The liquidation occurred as selling spread from Binance to Hyperliquid, with the underlying shares not trading, leaving contracts without fresh price references. HSBC expects early activity to be dominated by market makers, proprietary traders, and hedge funds pursuing basis trades rather than institutional investors seeking strategic hedges.
Ripple’s success will depend on whether the service offers cost advantages, simplicity, and better collateral utilization compared to existing brokers. The new swaps are currently offered through Ripple Prime’s British Virgin Islands license, with plans to expand to more jurisdictions. While Ripple has named an early customer, the total trading volume through the service has not been disclosed.