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Ripple’s bold growth plan subsequent to its lengthy legal dispute with the US Securities and Exchange Commission (SEC) is being seen as a conclusive attempt to recover lost traction. Pro-XRP lawyer John E Deaton, a notable voice within the XRP ecosystem, noted via X, asserting, “I concur with Chamath [Palihapitiya]. I also view Ripple’s $1.25 billion acquisition of Hidden Road as perhaps the prime example of the intersection between TradFi and DeFi throughout all of crypto.”
Ripple Recovers After SEC Dispute
Hidden Road, a leading brokerage firm handling over $3 trillion yearly across more than 300 institutional clients, is now utilizing the XRP Ledger (XRPL) for post-trade settlement operations. This integration is projected to lead to a dramatic reduction in settlement durations, compressing the conventional 24-hour timeframe to a swift 3–5 seconds. The newly introduced RLUSD stablecoin will function as collateral within this framework, effectively linking digital assets with traditional financial (TradFi) systems.
Deaton underscored the importance of this move, clarifying that the acquisition “incorporates blockchain infrastructure into institutional trading, uniting DeFi’s efficiency with TradFi’s scale and client base, positioning Ripple as a foremost innovator in institutional DeFi.”
The strategic relevance of custody services is also a significant aspect of the post-litigation strategy. Deaton highlighted that Ripple’s foray into custody solutions — primarily through the purchases of Metaco and Standard Custody — is a calculated maneuver. “There’s a very specific reason Ripple now provides ‘Ripple Custody,’” he remarked. “By offering custody alongside payment and stablecoin solutions, Ripple transforms into a comprehensive destination for financial institutions adopting blockchain technology.”
The choice to emphasize custody is backed by market forecasts. As per the Boston Consulting Group, the digital asset custody sector is projected to surpass $16 trillion in assets by 2030. Deaton suggested that this projection may have driven the swift advancements in the arena.
As per Deaton, the enterprise’s broader vision seems focused on establishing the XRP Ledger as a foundational basis for tokenization services. The attorney indicated that Ripple is positioning itself to provide tokenization-as-a-service, allowing banks to tokenize conventional assets like stocks, bonds, and real estate. The RLUSD stablecoin is anticipated to play a central role in facilitating these tokenized transactions on the XRPL.
“It’s evident that Ripple seeks to capitalize on its custody infrastructure for tokenization-as-a-service, enabling banks to tokenize traditional assets such as stocks, bonds, or real estate on the XRPL with RLUSD being essential in facilitating these transactions, positioning the XRPL as a global hub for tokenized assets,” Deaton observed.
Summing up the broader implications of Ripple’s recent actions, Deaton concluded, “It seems to me that Brad Garlinghouse is compensating for time lost due to the SEC lawsuit.”
At the time of publication, XRP was trading at $2.31.
Featured image crafted with DALL.E, chart from TradingView.com
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