Ripple Prime CEO Mike Higgins says: $XRP It will play a larger role in institutional finance.
He pointed out that digital assets will be used as collateral alongside Bitcoin, Ethereum, stablecoins and tokenized money market funds.
This comment was highlighted by community figure Eli, who shared an excerpt from a recent podcast featuring Higgins.
Important points
- $XRP It may serve as collateral alongside Bitcoin, Ethereum, stablecoins, and institutional tokenized money funds.
- Ripple Prime’s CEO said the market is moving towards a traditional financial structure that separates trading and custody roles.
- Financial institutions prefer custodians or tripartite systems and avoid storing assets directly on exchanges for increased security.
- Tokenization has the potential to enable instant payments using assets such as: $XRP We handle your trading, liquidity and margin needs.
Financial institutions transitioning to traditional financial structures
During the discussion, Higgins explained how the cryptocurrency market is gradually evolving towards a structure that resembles traditional financial markets. Instead of exchanges handling everything themselves, different companies will manage trading, storage, brokerage, and settlement independently.
He said many financial institutions no longer want to hold assets directly on exchanges. Instead, they prefer custodians and tripartite systems where assets can be used as collateral without transferring ownership to an exchange.
$XRP Mentioned alongside Bitcoin and Ethereum
One of the key moments in the discussion was when Mr Higgins explained the types of assets that financial institutions may use in future collateral and payment systems. He said:
“No, it’s Bitcoin, it’s Ethereum, it’s $XRPit is a stablecoin and a tokenized money market fund. ”
Higgins said nearly all valuable assets could eventually be tokenized and used for payments, financing and margin trading.
This means $XRP It may be used for more than speculation. Financial institutions can use it as collateral for margin requirements, settlement payments, and liquidity management.
Meanwhile, he added that tokenization is rapidly expanding across global finance, although the industry is still in its infancy.
Ripple sees tokenization as reshaping the market
Higgins also discussed a future where tokenized assets can be instantly used in everyday transactions.
As an example, someone could one day use tokenized NVIDIA stock to buy a cappuccino at Starbucks, even on Sundays when traditional markets are closed, he said.
He explained that this will require instant payment systems, real-time pricing and advanced risk management tools.
Unlike traditional banking systems, blockchain networks and stablecoins can operate 24/7 without waiting for bank business hours.
$RLUSD Stablecoin highlights
Higgins also highlighted Ripple. $RLUSD Stablecoins and how they can improve capital efficiency.
He said that instead of waiting for banks to process transfers, traders can use stablecoins to immediately fulfill collateral requests. This reduces risk and potentially reduces the amount of upfront margin required by the broker.
Faster payments will allow financial firms to move “from business days to calendar days,” Higgins said.
Ripple’s Hidden Road Deal
Higgins translated these ideas into Ripple’s acquisition of Hidden Road, which now operates as Ripple Prime. The company focuses on cross-margining between crypto spot markets, ETFs, futures, and options.
He noted that while financial institutions have already adopted strategies including spot Bitcoin, Bitcoin ETFs, and CME futures contracts, better infrastructure is still needed to support efficient cross-market trading.
