Ripple CEO says prime brokers unlock trillions in crypto institutional capital

Ripple CEO Brad Garlinghouse has emphasized the growing role of prime brokers in connecting traditional finance (TradFi) with the crypto market, describing the trend as a gateway to unlocking "trillions" in institutional capital. In a recent analysis, he highlighted firms like Hidden Road, which is facilitating institutional access to digital assets by offering services such as custody, trading, and compliance infrastructure. These firms are positioning themselves as critical infrastructure for institutions seeking to navigate crypto markets with the same standards applied in traditional finance [1].

Prime brokers, traditionally intermediaries for trading, custody, and settlement, are now pivotal in addressing crypto’s fragmented landscape. Institutions, including hedge funds and banks, are leveraging these platforms to access deep liquidity and secure custody solutions without directly engaging with volatile or unregulated exchanges. Hidden Road, for instance, has been cited as a standout for its institutional-grade offerings, which include risk-managed systems and compliance frameworks previously absent in early crypto markets [1].

Garlinghouse’s remarks align with a broader narrative of crypto’s institutionalization. By bridging TradFi and digital assets, prime brokers are removing barriers that have historically restricted large-scale participation. This development signals a maturing market where institutional capital, previously hesitant, now finds a viable on-ramp. The CEO’s assertion of "trillions on the table" underscores the potential scale of this shift, suggesting that the next phase of growth may hinge on institutional adoption rather than retail-driven volatility [1].

The implications extend beyond individual firms. As prime brokers standardize services and reduce operational risks, they are reshaping perceptions of crypto as a viable asset class. This evolution could accelerate regulatory clarity and market stability, addressing concerns that have long hindered institutional entry. However, challenges remain, including the need for consistent regulatory frameworks and the mitigation of counterparty risks inherent in crypto’s nascent infrastructure [1].

Source: [1] [Prime Brokers Are Bridging TradFi and Crypto: Ripple CEO] [https://coinmarketcap.com/community/articles/688511bf8a3c8716fae8e38c/]