As Ripple continues to improve its services to better serve institutions across the globe, it has just announced a major development that has put its native stablecoin, RLUSD, in the spotlight.
In a recent announcement shared today, the San Francisco blockchain firm has reportedly launched round-the-clock stock trading through its prime brokerage platform, Ripple Prime.
RLUSD-backed loans are live
Following the development, Ripple Prime will begin to allow institutional clients to trade stocks 24/7 while using Ripple USD (RLUSD) as collateral.
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With this move, institutional investors will now have access to continuous trading through Ripple Prime with the opportunity to use RLUSD as collateral for their positions.
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While the move positions RLUSD for broader adoption, it also expands its potential uses beyond payments and treasury operations.
As such, the Ripple stablecoin will serve a more active role in institutional trading and financing as it aims to help institutions manage trading positions and move capital more efficiently without relying entirely on traditional banking.
Ripple's stock trading may face limited liquidity
While the move has garnered interest across the crypto community, there are speculations about certain challenges that could limit institutions from fully exploring the 24/7 trading system.
Speculators have highlighted that liquidity in these emerging 24/7 stock markets remains limited. As such, it becomes difficult for institutions to execute large trades without significantly affecting prices.
This could become a challenge for Ripple Prime's new product, as institutional investors would need sufficient buyers and sellers to execute large orders efficiently, regardless of the time of day.