Ripple brings Wall Street into 24/7 stock bets, but HSBC warns markets are still thin
Source: CoinDesk ·
From the source
Institutions can trade through Ripple Prime and post RLUSD as collateral. Finding enough buyers and sellers for large positions could prove harder. Ripple is giving institutions a way to bet on stocks, gold and oil over the weekend through its brokerage business, but HSBC says thin trading could limit how much money follows them in. Daragh Maher, head of digital assets research at HSBC, called the launch an “evolutionary, not revolutionary” step in a note to clients on Monday, a copy of which was shared with CoinDesk. “This is a rapidly growing market but not a very big one when compared to the Trad Fi markets they are tracking,” Maher wrote. “The stronger case for the product comes once there is sufficient depth for investors to express views and adjust risk when conventional markets are closed.” Ripple Prime, the brokerage formerly known as Hidden Road, now lets clients trade swaps tied to more than 100 markets, including shares, commodities and currencies. A swap is a contract…