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      Ripple Prime Launches 24-Hour Stock Swap Service Amid Liquidity Concerns

      Ripple's brokerage service, Ripple Prime, has introduced a 24-hour trading platform for swap contracts linked to over 100 stocks, commodities, and foreign exchange markets. This service allows institutional clients to use the USD stablecoin RLUSD, issued by Ripple, as collateral. The swap contracts are designed to track perpetual futures listed on the cryptocurrency derivatives exchange Hyperliquid, enabling trading around the clock and allowing investors to build positions in various assets, including gold, even when traditional markets are closed. The launch was announced on October 15, with trading company Virtu already utilizing the new service.

      HSBC's head of digital asset research, Daragh Maher, commented on the launch, describing it as an evolution rather than a revolution in the financial markets. He noted that while the market for such products is growing, it remains significantly smaller than traditional financial markets. Maher indicated that the appeal of Ripple's offering will increase as market depth improves, allowing investors to manage risks more effectively during times when traditional markets are not operational. He anticipates that initial users will primarily include market makers, proprietary traders, and hedge funds rather than institutions seeking long-term hedging strategies.

      Recent trading activity has highlighted risks associated with this new service. Last Saturday, a rapid sell-off resulted in approximately $52 million in leveraged positions being liquidated within a short timeframe, as the underlying stocks were not trading and the contracts lacked updated market prices. HSBC emphasized that Ripple's success in this venture will hinge on whether it can provide a more cost-effective and efficient service compared to existing brokers. The new swap business operates under Ripple Prime's license in the British Virgin Islands, with plans for future expansion into additional jurisdictions.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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