Ripple Expands Prime Brokerage Services with Hyperliquid, Leaving XRP Behind

Market Overview

The cryptocurrency market has experienced significant fluctuations in recent times, with various factors contributing to the volatility. The recent launch of Ripple Prime's swap offerings for institutional clients has further added to the market's complexity.

Ripple Prime's New Service

Ripple Prime is a prime brokerage service that allows clients to trade on Hyperliquid's perpetual markets. The service uses Ripple's stablecoin, Ripple USD (CRYPTO: RLUSD), as collateral and does not involve XRP directly. This means that clients can manage their positions without buying, holding, or transferring XRP.

Market Impact

The launch of Ripple Prime has led to a surge in open interest in traditional-asset perpetual markets, from nearly zero to about $9 billion over the past year. However, both XRP (CRYPTO: XRP) and HYPE (CRYPTO: HYPE) saw modest price moves on launch day: XRP rose 1.1%, while Hyperliquid rose 0.8% over 24 hours.

Competition from Deribit

Deribit is introducing over 90 USDC-settled contracts for both crypto and traditional assets, which could pose a threat to Hyperliquid's pricing and liquidity for institutional business.

Ripple's Growth

Ripple's clients have an indirect relationship with Hyperliquid's buybacks, as client orders hit Ripple's book first and reach Hyperliquid only if Ripple Prime hedges its exposure on Trade.xyz's markets. However, Virtu, one of Ripple Prime's launch clients, hasn't committed to any volume.

XRP's Demand

XRP's main advantage lies in its co-signing of Ripple's regulatory efforts, but recent victories for the company haven't yet translated into a recovery in its coin's price. XRP traders are facing a steeper decline, and its current price of $1.34 is roughly 63% below its July 2025 record high of $3.65.

HYPE's Performance

HYPE is about 17% below its own all-time high, suggesting that the market has already rewarded Hyperliquid's growth, with Ripple's launch potentially driving new trading volume.

Conclusion

In conclusion, Ripple's expansion into prime brokerage services with Hyperliquid raises questions about which cryptocurrency will benefit more from the deal. While XRP's demand remains unchanged, HYPE is closer to its all-time high, suggesting that the market has already rewarded Hyperliquid's growth.