Ripple's Strategic Moves Boost XRP's Institutional Prospects

By: Eva Baxter

Ripple's recent flurry of strategic activity signals a pivotal phase for XRP, as it positions itself as a central player in cryptocurrency and financial markets. The acquisition of Hidden Road, now branded as Ripple Prime, creates the first crypto company to own and operate a global, multi-asset prime broker, anticipated to revolutionize the way Ripple utilizes XRP in institutional finance.

Ripple's CEO, supported by growing bullish sentiment, has emphasized XRP's pivotal role amid ambitious developments like Ripple Prime's launch. The CEO's remarks sparked considerable interest, as XRP forecasts a potential price rally, eyeing levels between $3 and $3.45.

However, as enthusiasm swells, experts like software engineer Vincent Van Code point to logistical challenges for large firms eager to hold XRP directly, such as the need for formal custody arrangements. This hurdle hints at the necessity for exchange-traded funds (ETFs) and equity holdings as alternative routes for institutional adoption. Notably, Evernorth, backed by Ripple, plans to build an institutional XRP treasury, targeting $1 billion in purchases.

Ripple President Monica Long envisions a bright future with XRP's utility in prime brokerage operations, aided by Ripple Prime's integration of RLUSD as collateral. As Ripple extends its reach with acquisitions like Metaco and GTreasury, XRP continues to solidify its presence in both traditional finance and the evolving digital economy.