HSBC: Liquidity depth will determine whether Ripple's 24/7 derivatives service can attract more institutions

On October 21, citing CoinDesk, HSBC's head of digital asset research, Daragh Maher, said in a client note that Ripple Prime's 24/7 derivatives service represents an "incremental rather than revolutionary" development, and that the market size remains small compared with the traditional financial markets it tracks. Only with sufficient trading depth can institutions establish positions and adjust risk when traditional markets are closed. Early participants are expected to be mainly market makers, proprietary trading firms, and hedge funds arbitraging price spreads in related assets, rather than institutions seeking strategic hedges.

Ripple Prime previously launched swap contracts covering more than 100 equity, commodity, and FX markets, linked to Trade.xyz's perpetual contracts on Hyperliquid, and supports RLUSD stablecoin as collateral. Virtu has already used the service, but Ripple has not yet disclosed trading volumes.