- Ripple strengthens RLUSD using Hidden Road’s licenses for full regulatory market access.
- RLUSD stablecoin applies for Fed account to improve reserve safety and transparency.
- Cross-margin trading with RLUSD connects traditional finance and crypto for seamless asset utility.
Ripple has fortified its position in the stablecoin market through the acquisition of Hidden Road, adding a complete set of regulatory licenses to support the launch and operations of its RLUSD stablecoin.
According to CoinFund President Christopher Perkins, the move delivers immediate functionality by combining Hidden Road’s authorizations with Bitnomial’s distribution capabilities.
The licensing structure now includes approvals for Derivatives Clearing Organizations, Designated Contract Markets, Futures Commission Merchants, and broker-dealer activities. Through this regulatory basis, Ripple can serve multiple financial markets without compromising state and federal compliance.
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Perkins observed that though the plan is drawn, implementation will matter. He emphasized the point that licenses are not enough and success can only be achieved when Ripple shows sustained performance and penetration in the market.
John E. Deaton, a prominent attorney in the digital asset space, agreed with Perkins. He described the Hidden Road buyout as a powerful representation of old money going hand in hand with crypto companies.
Meanwhile, Paul Barron, a prominent blockchain reporter emphasized in a recent tweet that Brad Garlinghouse, Ripple’s CEO affirmed that RLUSD would now be accepted as collateral in all Hidden Road services.
Federal Reserve Access and Banking Charter Deepen RLUSD Infrastructure
Ripple has taken steps to reinforce RLUSD by applying for a national bank charter from the Office of the Comptroller of the Currency. The firm also submitted a request for a Federal Reserve Master account through Standard Custody, aiming for direct integration with central banking infrastructure.
This setup would allow RLUSD reserves to be held directly with the Federal Reserve, eliminating reliance on third-party commercial banks. The solution would increase reserve transparency, decrease exposure to risk, and promote confidence in financial institutions considering integrating stablecoins.
Garlinghouse has connected these initiatives to a change in the spirit of banking compared to the current setting and the constraints of Operation Chokepoint 2.0. He referred to banks’ increased willingness to collaborate within explicit regulatory safeguards.
RLUSD’s Cross-Margin Capability Increases Utility and Reach
Ripple’s RLUSD is structured to support cross-margin trading, enabling traders to use it as collateral across digital and traditional assets. This function allows continuous access to capital without the limitations of regular banking hours.
Its flexible functioning is backed by a high level of regulatory standing, which may be quite appealing to institutional and retail traders who utilize the stablecoin. With its transparency of regulation and technical ability, RLUSD will be the bridge between the crypto markets and conventional finance.
Advances by Congress in the regulation of digital assets are an additional reason why Ripple is headed in the right direction. This policy alignment, licensing, and execution make RLUSD a stronger candidate in becoming a regulated, usable stablecoin operating in a variety of trading contexts.
Conclusion
Ripple’s acquisition of Hidden Road adds a powerful layer of regulatory support to RLUSD’s launch. With cross-margin capabilities and direct Federal Reserve ambitions, the stablecoin is being structured to promote strong institutional integration and market use.
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