Is Hidden Road’s OTC Launch the Reason for Ripple’s Bullish Outlook?

• Ripple’s $1.25B acquisition of Hidden Road gives it control over a global, multi-asset prime broker platform.
• Hidden Road launched OTC swaps for U.S. clients, with RLUSD likely used for collateral and XRP as a bridge asset.
• Ripple is positioning XRP inside institutional capital flows, moving beyond retail transactions into deeper financial infrastructure.

Ripple’s $1.25 billion buyout of prime brokerage Hidden Road and the subsequent launch of over-the-counter (OTC) crypto swaps in the U.S. have sparked discussions about their potential impact on Ripple’s market position and the performance of its native token, XRP.

Following the acquisition, Hidden Road introduced cash-settled OTC crypto swaps for U.S.-based institutional clients. These swaps, offered through Hidden Road Partners CIV UK Ltd., provide access to a range of prominent digital assets and include services like cross-margining and financing.

Institutional Expansion and Regulatory Approvals

Rising institutional demand was highlighted in December 2024, when Hidden Road CEO Michael Higgins stated there was growing appetite from large institutions:

“Servicing them [institutional investors] across traditional finance and digital asset ecosystems that have already converged presents a really unique opportunity for us in the marketplace.”

Hidden Road’s OTC swap rollout in the U.S. is one of the first product launches since Ripple’s acquisition. Soon after the deal, Hidden Road received a broker-dealer license from the Financial Industry Regulatory Authority (FINRA), which oversees brokerage firms and exchange markets in the U.S.

In parallel, Hidden Road also became one of the first firms to obtain a Markets in Crypto-Assets (MiCA) license in Europe. The Dutch Authority for the Financial Markets confirmed the license on January 30, 2025, shortly after the regulatory framework took effect on December 30, 2024.

Related: RLUSD Listed on Bitget; Ripple’s Stablecoin Offers XRP Ledger, Ethereum Interoperability

Implications for XRP and Ripple’s Market Position

While the launch of OTC swaps expands Ripple’s institutional offerings, the direct impact on XRP’s price has been modest. XRP experienced a 3% decline following the acquisition announcement, influenced by broader market factors .

 XRP/USDT 4-Hour Price Chart with RSI and 50 EMA. Source: TradingView.com

However, the integration of Hidden Road’s operations with Ripple’s infrastructure, including the potential use of Ripple’s stablecoin RLUSD for collateral and the XRP Ledger for post-trade settlement, could enhance XRP’s utility in the long term. 

Market Outlook: XRP’s Role Inside the Institutional Shift

Ripple’s focus now leans into institutional clearing and liquidity—sectors that handle capital volumes far exceeding retail transactions. According to commentary by @WKahneman, XRP’s visibility may seem reduced, but its function remains embedded in these larger financial systems. RLUSD fits institutional collateral needs, but the movement, bridging, and liquidity mechanisms behind it still rely on XRP.

The XRPL, built to support such infrastructure, enables use cases like tokenization and AMM-based liquidity. As regulated stablecoins like RLUSD circulate on-ledger, XRP’s role in transferring value between asset classes, jurisdictions, and networks becomes more defensible for institutional players.

Realted: VivoPower (VVPR) Details $121M XRP Treasury With Saudi Royal Backing

This shift signals Ripple’s deeper integration into capital markets. If these tools perform as intended, XRP could gain utility beyond speculation—operating at the infrastructure level. However, the outcome hinges on adoption, regulation, and Ripple’s ability to operationalize this transition.