Mike Higgins, CEO of Ripple Prime, said that XRP will play a greater role in institutional finance.
He noted that this digital asset will be used as collateral alongside Bitcoin, Ethereum, stablecoins, and tokenized money market funds.
The comment is highlighted by community figure Eri, who shared an excerpt from Higgins's recent podcast appearance.
Key points
- XRP can be used as collateral by institutions alongside Bitcoin, Ethereum, stablecoins, and tokenized money market funds.
- The CEO of Ripple Prime said the market is shifting toward traditional financial structures, with trading and custody roles separated.
- Institutions prefer to use custodians and third-party systems to avoid storing assets directly on exchanges, enhancing security.
- Tokenization enables instant settlement, and assets like XRP can meet trading, liquidity, and margin requirements.
Institutions transitioning to traditional financial structures
During the discussion, Higgins explained how the cryptocurrency market is gradually evolving into a structure similar to traditional financial markets, where different companies now handle trading, custody, brokerage, and settlement separately.
He stated that many institutions no longer wish to hold assets directly on exchanges. Instead, they prefer custodial services and third-party systems that allow assets to be used as collateral without transferring ownership to the exchange.
XRP is mentioned alongside Bitcoin and Ethereum
One of the key moments in the discussion occurred when Higgins described the types of assets institutions might potentially use in collateral and settlement systems. He noted:
No, it’s Bitcoin, Ethereum, Ripple, stablecoins, and tokenized money market funds.
Higgins believes that nearly any valuable asset can eventually be tokenized and used for settlement, financing, and margin trading.
This means XRP may extend beyond speculation. Institutions could use it as collateral for margin requirements, settlement payments, and liquidity management.
At the same time, he added that the industry is still developing, but tokenization is rapidly expanding across the global financial landscape.
Ripple believes tokenization is reshaping the market
Higgins also describes a future where tokenized assets can be used immediately in everyday transactions.
He gave the example that one day in the future, people could use NVIDIA stock tokens to buy a cappuccino at Starbucks, even on Sundays when traditional markets are closed.
He explained that this would require an instant settlement system, real-time pricing, and advanced risk management tools.
Unlike traditional banking systems, blockchain networks and stablecoins operate 24/7 without waiting for bank business hours.
RLUSD Stablecoin Highlights
Higgins also emphasized Ripple's RLUSD stablecoin and how it enhances capital efficiency.
He said that traders can use stablecoins to immediately meet collateral requirements without waiting for banks to process transfers, reducing risk and lowering the amount of upfront margin required by brokers.
Higgins said that faster settlement speeds can enable financial firms to transition from "business days" to "calendar days."
Ripple's private transactions
Higgins connected these ideas to Ripple's acquisition of Hidden Road, which now operates as Ripple Prime. The company focuses on cross-margin trading between cryptocurrency spot markets, ETFs, futures, and options.
He noted that institutions are already using strategies involving spot Bitcoin, Bitcoin ETFs, and CME futures contracts, but still require better infrastructure to support efficient cross-market trading.