Ripple Prime: XRPL’s Institutional Infrastructure Strategy
1. Introduction
1.1 The Convergence of TradFi and DeFi: The Integration of Ripple Prime and Hyperliquid
The boundaries between Traditional Finance (TradFi) and Decentralized Finance (DeFi) are dissolving faster than ever before. The strategic integration of Ripple Prime and Hyperliquid, announced in February 2026, serves as a pivotal milestone accelerating this trend. By extending its institutional-grade prime brokerage infrastructure—acquired through large-scale M&A—into the DeFi space, Ripple has established a practical gateway for institutional capital to enter the on-chain ecosystem.
1.2 Innovation in Institutional-grade Risk Management and Capital Efficiency
Despite the high profitability of DeFi, institutional investors have historically been hesitant to participate due to regulatory uncertainty and the complexities of risk management. Ripple Prime addresses these concerns by combining the deep liquidity of Hyperliquid, a high-performance decentralized exchange, within a framework familiar to institutional clients. This structural innovation enables cross-margining across all asset classes, effectively achieving both robust security and maximized capital efficiency.
1.3 Redefining XRPL’s Identity: The Enterprise Financial Infrastructure Layer
This collaboration signals a significant turning point for the XRP Ledger (XRPL) ecosystem. While XRPL’s current Total Value Locked (TVL) remains modest compared to other major chains, this disparity highlights the immense growth potential for on-chain financial activity relative to its substantial market capitalization. This research analyzes how XRPL is evolving into an enterprise financial infrastructure that bridges TradFi and DeFi. Specifically, we will provide an in-depth exploration of the XRP Liquid Staking Token (LST) infrastructure—which remains independent of specific protocols—and the new business opportunities it creates.
2. Ripple Prime: Expanding Institutional Prime Brokerage into DeFi
2.1 The Acquisition of Hidden Road and the Birth of Ripple Prime
In April 2025, Ripple made a decisive move to dominate the institutional financial market by acquiring Hidden Road for $1.25 billion ($1.25B), the largest M&A in the cryptocurrency industry. Hidden Road was a premier multi-asset prime broker providing clearing, prime brokerage, and financing services to over 300 institutional clients, processing more than $3 trillion ($3T) in annual volume across FX and digital asset markets. Following the acquisition and rebranding to Ripple Prime, the platform saw a threefold increase in trading volume. It is now accelerating its organic integration with the Ripple ecosystem by utilizing the RLUSD stablecoin as collateral and executing plans to migrate post-trade activities to the XRP Ledger (XRPL).
2.2 The First Step in DeFi Expansion: Hyperliquid Integration
Against this strategic backdrop, the integration of Hyperliquid represents the first practical execution of Ripple Prime’s vision in the DeFi space. The core of this integration lies in providing institutional clients with direct access to Hyperliquid’s decentralized perpetual futures market while maintaining the same level of stability found in traditional prime brokerages.
The key features of the integration mechanism are as follows:
Single Counterparty Model: Even when trading on DeFi protocols, Ripple Prime remains the sole counterparty for institutional clients, centralizing and streamlining risk management while preventing the dispersion of counterparty risk.
Unified and Cross-margining: DeFi positions can be cross-margined alongside all other asset classes, including FX, fixed income, OTC swaps, and cleared derivatives.
Maximization of Capital Efficiency: By utilizing the entire portfolio as a single pool of collateral, the platform optimizes collateral efficiency and capital deployment.
2.3 Value and Vision as Institutional-grade Infrastructure
Regarding this collaboration, Michael Higgins, CEO of Ripple Prime International, stated, “We are leading the way in combining decentralized finance with traditional prime brokerage services, providing direct trading support, yield generation, and broad access to digital assets”. This represents a structural innovation that moves beyond simple functional linkage to seamlessly integrate DeFi liquidity into TradFi workflows within an institutional-grade risk management framework. Consequently, Ripple Prime has positioned itself as a unique gateway, allowing institutional investors to leverage Hyperliquid’s deep liquidity—reaching $32 billion in daily volume—while maintaining the interfaces and regulatory compliance environments they are accustomed to.
3. Current TVL Status of XRPL and Opportunities for Institutional DeFi
3.1 The Current State and Limitations of XRPL DeFi in Numbers
From a purely numerical perspective, the XRP Ledger (XRPL) decentralized finance (DeFi) ecosystem is currently in its nascent stages compared to other Layer 1 blockchains. As of February 2026, the Total Value Locked (TVL) on XRPL stands at approximately $50.0 million. This figure is significantly lower when compared to Ethereum (ETH), which boasts over $50 billion in TVL, or Solana (SOL), which exceeds $10 billion. Furthermore, the fragmented TVL structure across roughly 19 protocols and low activity on native DEXs suggest that competing in the retail-centric DeFi space remains a challenge for XRPL to address in the future.
3.2 The TVL Paradox: Analyzing Potential Relative to Market Capitalization
However, these metrics contain a "TVL Paradox" that fails to fully reflect XRPL’s intrinsic market value. While the liquidity potential of XRP—a major asset by market capitalization—is massive, the currently low TVL indicates that this liquidity has not yet been sufficiently converted into on-chain financial activities. If XRPL were to achieve a TVL-to-Market Cap ratio similar to those of major chains like Ethereum or Solana, it would lead to the formation of an explosive institutional DeFi market that is dozens of times larger than current figures. In essence, XRPL has the potential to bypass retail-oriented TVL competition and directly link its vast market cap-based liquidity to institutional-grade financial services.
3.3 Strategic Positioning as an Enterprise Financial Infrastructure Layer
Ultimately, XRPL’s strategic focus is on strengthening its identity as an enterprise financial layer trusted by traditional financial institutions, rather than competing for high Annual Percentage Yields (APY) among general users. Its technical capabilities—including a processing capacity of over 1,500 transactions per second, 3-5 second settlement finality, and a proven track record of over 10 years of stable operation—provide an optimal environment for institutional investors to migrate trillions of dollars in capital on-chain. Ripple Prime’s plan to naturally guide its 300+ institutional clients and $3 trillion in annual transaction volume into the XRPL ecosystem is rooted in these infrastructural strengths. Consequently, XRPL is poised to secure a unique position as a powerful pipeline for institutional capital and a global financial infrastructure, transcending simple numerical competition.
4. XRP LST Infrastructure: A Multi-layered Yield Layer Beyond Staking
4.1 Opportunities in the XRP Staking Market and the Introduction of LST Infrastructure
XRP currently misses out on the opportunities presented by the global staking market, which is valued at approximately $116 billion, due to the absence of a native staking mechanism. However, once Liquid Staking Token (LST) infrastructure is fully introduced to the XRP Ledger (XRPL), it is expected to serve as a core financial foundation that maximizes the capital efficiency of institutional funds, rather than being just a simple yield product. The core value of XRP LST infrastructure lies in its potential as an independent yield generation layer that is not subordinate to the success or failure of any specific protocol.
4.2 Combining LST with High-Speed Trading Layers: Realizing Multi-layered Yield Models
The synergy generated when this LST infrastructure is combined with high-speed trading layers like Hyperliquid provides a highly attractive scenario for institutional investors. Institutions can maintain the base yield generated by staking XRP while simultaneously seeking additional alpha by utilizing those LSTs as collateral for Hyperliquid derivative trades. This enables a multi-layered yield structure—extending from staking rewards to collateral utilization and leveraged trading—without selling the underlying assets, effectively and drastically lowering the opportunity cost of capital.
4.3 Completion of the Multi-layer Ecosystem: Synergy of Payment, Yield, and Trading
The XRP ecosystem is completing a multi-layer structure where roles are separated yet complementarily connected: XRPL as the payment and settlement layer, LST infrastructure as the yield generation layer, and Hyperliquid as the high-speed trading and derivatives layer. In particular, if Ripple Prime accepts XRP LSTs as official collateral, institutions will be able to perform cross-margin trading within the same collateral pool, moving between traditional assets like FX or bonds and digital asset derivatives.
4.4 Evolution into a Core Asset for Institutional Finance
This infrastructure-centric approach will act as a decisive catalyst, evolving XRP from a mere remittance tool into a core liquidity and yield asset for global institutional finance. This presents a strategic direction that maximizes the competitiveness of the entire ecosystem by establishing best-in-class infrastructure at each layer, relieving XRPL of the burden of attempting to provide every function within a single chain.
5. Five Key Business Opportunities and Future Value of the XRPL Ecosystem
The combination of Ripple Prime and Hyperliquid opens a new business horizon for the entire XRPL ecosystem that extends far beyond simple technical linkage. By moving away from retail-centric DeFi competition and positioning as an institutional-grade financial infrastructure, the following five key business opportunities emerge.
5-1. On-chain Clearinghouse & Real-time Settlement Infrastructure
Ripple Prime’s plan to migrate post-trade activities to the XRPL is a powerful solution to the chronic inefficiencies in institutional finance. By establishing an on-chain clearinghouse that processes the clearing and settlement of multi-asset trades atomically on the XRPL, the traditional T+2 settlement system can be shortened to T+0 or real-time settlement.
This dramatically enhances capital efficiency in the global securities lending market, valued at approximately $1.2 trillion.
It also provides opportunities to minimize operational risks through automated margin calls and liquidation systems based on smart contracts.
5-2. Cross-chain Bridge Hub & Liquidity Aggregator
Through deep integration with protocols like Axelar and LayerZero, XRPL can serve as a hub that consolidates liquidity across different blockchains.
It is possible to build a liquidity aggregator business that connects major chains such as Hyperliquid (L1), Ethereum, and Solana to the XRPL hub, managing them through a single interface.
With approximately 45% of Fortune 500 companies exploring multi-chain strategies, Ripple Prime’s institutional-grade bridge services—which comply with KYC/AML—are well-positioned to secure a competitive edge in a cross-chain market expected to reach $911 million by 2032.
5-3. RLUSD-based RWA (Real World Asset) Tokenization & Collateralized Lending Market
The RWA market is growing rapidly, reaching $24 billion in 2025, with institutional participation accelerating. XRPL can provide a platform for the on-chain clearing and settlement of tokenized assets such as real estate, bonds, and equities.
Utilizing RLUSD as the standard settlement rail allows for services like providing loans against tokenized Treasury bills—similar to BlackRock’s BUIDL fund.
Multi-chain portfolio margin services, managing RWA assets scattered across Ethereum and Solana within a single collateral pool, provide a foundation to compete with traditional banking infrastructures like Goldman Sachs’ GS DAP or JPMorgan’s Onyx.
5-4. Institutional (Permissioned) DeFi & ZKP Privacy
To address the regulated DeFi market where over $100 billion in institutional capital moves, XRPL can establish whitelist-based, institutional-only liquidity pools.
Leveraging planned 2026 upgrades for DeFi lending and Zero-Knowledge Proof (ZKP) interoperability, XRPL can ensure transaction confidentiality—a prerequisite for institutional clients—while maintaining transparent on-chain management.
This offers a risk management environment distinct from general retail DeFi, providing a unique path for Ripple Prime’s 300+ institutional clients to safely enjoy DeFi yields.
5-5. AI Agent-based Smart Liquidity Routing Optimization
AI agent technology, a core DeFi trend for 2026, can be introduced to optimize trade execution.
'Multi-chain Smart Routing,' where AI searches and executes at the optimal price across scattered liquidity pools like Hyperliquid, Uniswap, XRPL DEX, and CEXs, minimizes slippage for institutional clients.
Through proactive collateral adjustment functions based on dynamic risk analysis and market volatility predictions, XRPL can evolve beyond a simple transfer network into a sophisticated intelligent financial execution layer.
6. The Future of XRPL: Advancing Towards Global Financial Infrastructure
6-1. A Milestone for a New Leap: Ripple Prime x Hyperliquid
The collaboration between Ripple Prime and Hyperliquid transcends a simple partnership between two platforms; it clearly defines the next-generation direction for Ripple and the XRP Ledger (XRPL) ecosystem. This represents a strategic choice to bypass the retail-centric Total Value Locked (TVL) competition that has consumed other Layer 1 (L1) chains and instead secure a unique identity as an institutional-grade financial infrastructure layer. This integration is significant because it establishes a practical pathway to naturally guide Ripple Prime’s 300+ institutional clients and their massive $3 trillion ($3T) annual transaction volume into the XRPL ecosystem.
6-2. Vision for a Multi-layered Financial Hub
Ultimately, the future vision of XRPL lies not in a closed structure that attempts to complete all functions within a single chain, but in a ‘Multi-layered Financial Hub’ where infrastructures providing best-in-class performance at each layer are organically connected. Specifically, this is a structure where the XRPL Mainnet (handling payment and settlement), the LST (Liquid Staking Token) infrastructure (maximizing capital efficiency and yield generation), and Hyperliquid (providing high-speed trading and derivatives markets) operate complementarily. This approach is the most realistic and powerful way to overcome the limitations of XRPL’s current low TVL while simultaneously meeting the rigorous risk management and capital efficiency requirements of institutional investors.
6-3. Recommendations for Global Financial Infrastructure
At this turning point where traditional financial institutions are entering the on-chain world in earnest, XRPL must prove its value as an essential infrastructure bridging TradFi and DeFi, moving beyond its role as a simple cryptocurrency transfer network. By strategically realizing the five business opportunities discussed—on-chain clearinghouse, cross-chain hub, RWA prime brokerage, institutional-only DeFi, and AI-based routing—XRPL can establish itself as a core enterprise layer of the global financial system. The process of building and integrating best-in-class infrastructure at each layer will be the key driver in maximizing the competitiveness of the entire XRPL ecosystem and leading true global financial innovation.
아티클 핵심 정보 출처
Ripple (2026, Feb 04)- Ripple Announces Support for Hyperliquid, Expanding Institutional Access to Onchain Liquidity
Business Wire (2026, February 3) - Ripple Announces Support for Hyperliquid, Expanding Institutional Access
Bloomberg (2025, April 8) - Ripple to Buy Prime-Brokerage Hidden Road for $1.25 Billion
DefiLlama (2026) - XRPL Total Value Locked
Investing.com (2026, February 5) - XRP: ETF Outflows and Liquidations Keep Near-Term Risk Skewed Lower
Chainscore Labs (2025, June 11) - Tokenized Securities Lending: The $1.2T Market Reboot
Intel Market Research (2025, December 23) - Blockchain Bridges / Crosschain Bridges Market Outlook 2026-2032
Disclaimer
The contents of this report are for informational purposes only and do not constitute a recommendation or basis for legal, business, investment, or tax advice under any circumstances. References to specific assets or securities are for informational purposes only and do not represent an offer, solicitation, or recommendation to invest. The final responsibility for any investment decisions lies solely with the investor, and this report should not be used as a guideline for accounting or legal judgment.
As a matter of principle, the author does not trade related assets using material non-public information obtained during the research or drafting process. The author and Catalyze may have financial interests in the assets or tokens discussed herein and may serve as a strategic partner to certain networks.
The opinions and analyses expressed in this report reflect the author's personal views and do not necessarily represent the official position of Catalyze or its affiliates. All information is current as of the date of publication and is subject to change without prior notice.