Ripple’s Acquisition of Hidden Road May Pave the Way for Enhanced Crypto Market Functionality
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Ripple Exec Reveals XRP Ledger’s Role in Hidden Road Deal
In a recent statement, a Ripple executive has shed light on the company’s plans for its XRP ledger technology as part of the acquisition deal with Hidden Road. According to the information revealed by Jake Simmons, Ripple’s focus remains “building use cases and utility for digital assets and enabling and solving customer problems for our banking and institutional customers.”
As part of this strategy, it appears that the XRP Ledger will play a crucial role in settling trades, recording trade details, reconciling clearing data, and perhaps even handling some transactions. This operational angle has been emphasized by prominent crypto commentator CryptoEri, who noted that “the XRP Ledger will probably handle some actual transactions (e.g., settling trades, moving RLUSD collateral) and data (e.g., recording trade details, reconciling clearing data) for Hidden Road’s post-trade processes.”
Ripple’s acquisition of Hidden Road, announced on April 8th, is still pending regulatory clearance. However, the potential implications of this deal are significant. The acquisition would grant Ripple access to a pre-existing distribution channel for its RLUSD stablecoin, allowing it to tap into existing relationships with venues such as Coinbase International, OKX, Deribit, Bitfinex, and Bullish.
In the meantime, the XRP Ledger appears poised to take center stage in the deal. As CryptoEri pointed out, the ledger will serve as a real-time clearing bus, rather than simply a passive settlement layer. This could have significant implications for the crypto market, potentially paving the way for more seamless and efficient cross-border transactions.
The deal’s regulatory status remains uncertain, with Ripple’s acquisition still pending approval from relevant authorities. However, even at this early stage, it is clear that the XRP Ledger will be a critical component of the transaction. As such, investors and traders would do well to keep a close eye on developments in this space.
In related news, XRP has traded steadily above support, currently priced at $2.11.
Source: https://bitcoinist.com/ripple-exec-xrp-ledger-role-hidden-road-deal/
