Ripple, the blockchain company closely associated with the XRP Ledger (XRP) network, said on Thursday that customers on its Ripple Prime platform can now trade the full range of cryptocurrency futures listed on Coinbase Derivatives.
The move gives institutions a new way to access regulated cryptocurrency derivatives within markets regulated by the Commodity Futures Trading Commission. Ripple says its Prime platform will clear more than $3 trillion in transaction volume by 2025.
This product includes Nano Bitcoin and Nano Ether (ETH) futures, which are smaller contracts designed to lower the capital required to trade. Coinbase also lists standard-sized and smaller-sized futures related to Solana and XRP. These contracts are cleared through Nodal Clear, a US clearing house.
Crypto derivatives have become one of the fastest growing segments of the digital asset market. Many large trading firms prefer futures because they allow investors to gain exposure to or hedge against price fluctuations without holding the underlying token. U.S. regulated futures markets have also attracted interest from institutions that need clear rules and centralized clearing.
The new service builds on Hidden Road, a futures broker and prime broker that Ripple acquired last year for $1.25 billion. The company currently operates under the name Ripple Prime and provides brokerage, clearing and financing services across multiple asset classes.
Ripple has been on an acquisition spree over the past year, acquiring a number of companies to complement the company’s digital asset offerings for institutions and businesses. In addition to Hidden Road, the company also acquired stablecoin payment company Rail for $200 million, as well as funding technology provider GTreasury and crypto wallet infrastructure startup Palisade.