XRP is gaining new momentum as Ripple’s recent acquisition, Hidden Road, has officially introduced over-the-counter (OTC) crypto swaps for institutional clients in the United States.
XRP is gaining new momentum as Ripple’s recent acquisition, Hidden Road, has officially introduced over-the-counter (OTC) crypto swaps for institutional clients in the United States. This strategic launch provides U.S.-based professional investors with access to cash-settled swaps across various major cryptocurrencies, marking another step forward in Ripple’s expansion within the financial market.
Hidden Road Partners, the entity executing the service, operates under the supervision of the UK’s Financial Conduct Authority. This initiative was formally unveiled on May 28 and aims to address a significant gap in the U.S. digital asset trading ecosystem. Ripple’s acquisition of Hidden Road, valued at $1.25 billion, was announced in April and made headlines by positioning Ripple as one of the first cryptocurrency companies to operate a fully integrated prime brokerage platform spanning multiple global asset classes.
OTC Crypto Swaps See Limited Access in the U.S.
OTC swaps are tailored for large private transactions that occur outside traditional public exchanges, allowing parties to conduct significant trades without affecting broader market prices. These trades are especially popular among institutional players who seek discreet and efficient execution.
Despite OTC swaps comprising a substantial portion of global digital asset trading activity, this space has historically lacked comprehensive offerings within the United States. Hidden Road’s global CEO, Michael Higgins, underscored this discrepancy, emphasizing that American institutional investors have long been underserved when it comes to advanced crypto trade products like these swaps.
Although Higgins didn’t disclose specific transaction volume estimates, data from earlier in the year shows rapid growth in this sector. For example, reports from early 2024 noted that institutional volumes for crypto OTC transactions surged by over 100% from the previous year, highlighting the urgency for U.S. institutions to gain access to these services.
Institutional Interest Driving Market Evolution
Growing interest from large financial players is playing a critical role in shaping these offerings. In an interview held in late 2024, Higgins pointed out how substantial institutional demand is fueling the evolution of digital asset services. According to him, institutions are seeking partners that can bridge traditional finance with blockchain technologies—a niche Ripple and Hidden Road are now equipped to fulfill.
Ripple’s recent push into OTC crypto swaps is one of the first major service rollouts following the Hidden Road acquisition announcement. It reaffirms Ripple’s ambition to cater to large-scale financial entities and create more integrated services tailored to institutional needs.
Shortly after the acquisition was announced, Hidden Road also reached another key milestone. It secured a broker-dealer license with the Financial Industry Regulatory Authority (FINRA), allowing the firm to legally operate as a broker-dealer within the U.S. market. This license enhances the firm’s regulatory legitimacy and opens doors to broader investor access.
On the international stage, Hidden Road further demonstrated its regulatory adaptability by becoming one of the first to secure a Markets in Crypto-Assets (MiCA) license in Europe. When the MiCA regulatory framework went into full effect at the end of December 2024, the Dutch Authority for the Financial Markets announced Hidden Road’s licensing the following month, highlighting the company’s proactive compliance strategy.
The combination of U.S. market entry through OTC swaps and broad regulatory credentials across Europe positions Ripple and its brokerage arm as influential players in the institutional crypto trading arena. This development could signal broader availability of structured crypto products in the U.S. sooner than anticipated, especially as financial institutions continue to increase their exposure to digital assets.
As regulatory clarity forms and market demand intensifies, XRP’s integration into advanced financial offerings like these OTC crypto swaps could significantly enhance its footprint in institutional finance. Ripple’s well-timed moves in both acquisition and product rollout underscore a broader strategy to develop a robust crypto-financial infrastructure that aligns with sophisticated investor needs.
Related: Ripple’s $1.25 billion Hidden Road acquisition deal
Related: Taurus, Parfin partnership to provide crypto infrastructure to institutions
Related: Institutional OTC volumes jumped 106%
Related: Expert Advice: Sell XRP If You’re Confused
Related: Hidden Road’s Netherlands entity secures MiCAR license
Quick Summary
XRP is gaining new momentum as Ripple’s recent acquisition, Hidden Road, has officially introduced over-the-counter (OTC) crypto swaps for institutional clients in the United States. This strategic launch provides U.S.-based professional investors with access to cash-settled swaps across various major cryptocurrencies, marking another step forward in Ripple’s expansion within the financial market.
Source
Information sourced from official Ripple publications, institutional research, regulatory documentation and reputable crypto news outlets.
Author
Ripple Van Winkle is a cryptocurrency analyst and founder of XRP Right Now. He has been active in the crypto space for over 8 years and has generated more than 25 million views across YouTube covering XRP daily.
Editorial Note
Opinions are the author's alone and for informational purposes only. This publication does not provide investment advice.
