Ripple brings Wall Street into 24/7 stock bets, but HSBC warns markets are still thin
Institutions can trade through Ripple Prime and post RLUSD as collateral. Finding enough buyers and sellers for large positions could prove harder.
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Summary
- Ripple Prime now allows institutional clients to trade swaps tied to more than 100 stock, commodity and currency markets around the clock, using its RLUSD stablecoin as collateral.
- HSBC called the offering “evolutionary, not revolutionary,” warning that limited liquidity could constrain large trades and initially favor market makers, proprietary traders and hedge funds.
- The risks of weekend trading surfaced when nearly $52 million in leveraged chip-stock positions were liquidated within 10 minutes while the underlying shares were not trading.
