Ripple's RLUSD Now Accepted as Collateral by Hidden Road for Cross-Margin Trading

Ripple CEO Brad Garlinghouse announced at a recent press conference in Singapore that Ripple’s stablecoin, RLUSD, will now be accepted as collateral across all services provided by prime brokerage firm Hidden Road. This move is expected to significantly impact the intersection of crypto and traditional finance. According to Garlinghouse, RLUSD is designed to enable efficient, large-scale cross-margin trading between virtual assets and traditional markets, with 24/7, year-round availability. This integration allows institutional players to engage in real-time trading across asset classes with improved capital efficiency.

Ripple’s acquisition of Hidden Road for $1.25 billion is a strategic move in the company’s broader institutional strategy. Hidden Road serves over 300 major clients and processes roughly $3 trillion in annual trading volume. Backed by Ripple’s robust balance sheet, the acquisition positions Hidden Road to offer enhanced infrastructure, more liquidity, and new financial instruments that bridge the traditional and digital worlds. Garlinghouse emphasized that Ripple is capitalizing on a unique market opportunity as U.S. regulatory conditions evolve. With the SEC litigation largely behind the company, Ripple is doubling down on its mission to build real-world utility. The RLUSD announcement is a central part of that vision, targeting institutional needs for liquidity, transparency, and seamless trading between fiat and crypto assets.

Unlike typical stablecoins, RLUSD is designed from the ground up for enterprise use. Launched in December 2024, it offers regulatory compliance, full backing with U.S. dollar reserves, and deep integration into financial markets. What sets RLUSD apart is its role as collateral in cross-margin trading, something no other stablecoin currently enables at scale. This means clients using Hidden Road can now use RLUSD to post collateral on both traditional and digital asset trades, unlocking significant efficiencies. For institutions managing complex portfolios, this reduces the need to move funds across platforms, lowers capital requirements, and speeds up execution in volatile markets.

The partnership between Ripple and Hidden Road is expected to bring more than just stablecoin support. Hidden Road also plans to integrate Ripple’s XRP Ledger (XRPL) into its post-trade infrastructure, enabling fast, low-cost settlement and clearing of transactions. XRPL’s scalability and decentralization make it well-suited for handling institutional volumes, and its integration could drive a substantial increase in on-chain activity. Analysts view this move as a real-world use case that proves the value of blockchain-based settlement systems. As more institutions gain exposure to XRPL through RLUSD and Hidden Road, Ripple’s network could see higher liquidity and deeper adoption.

Ripple has also applied for a national banking license in the U.S. and secured a Federal Reserve master account, positioning itself to issue and manage RLUSD directly under federal oversight. These steps reinforce its long-term commitment to regulatory clarity and institutional trust. With RLUSD now accepted by one of the largest digital asset prime brokers, and full integration with XRPL on the horizon, Ripple is charting a new course for stablecoins, one that prioritizes institutional readiness, financial interoperability, and round-the-clock efficiency.