They have agreed to integrate Ripple’s stablecoin across LMAX Group’s institutional marketplace.
LMAX Group, a cross-asset marketplace for FX and digital assets, and Ripple, a financial technology company offering crypto solutions for businesses, have launched a partnership to “accelerate the fusion of traditional and digital capital markets,” officials say.
As part of this multi-year collaboration, LMAX will integrate Ripple’s stablecoin RLUSD, which is pegged to the U.S. dollar, “as a core collateral asset across its institutional trading infrastructure,” officials say. This step is intended to help LMAX’s customers use RLUSD for cross-collateralization and margining across spot crypto, perpetual futures, and CFD trading. LMAX’s customers include banks, brokers, and buy-side institutions.
“As a part of the collaboration, Ripple will provide $150 million in financing to support LMAX’s long-term cross-asset growth strategy,” officials add.
The integration intends to offer LMAX Group clients:
- Enhanced liquidity: “RLUSD will serve as collateral and as a settlement currency for spot crypto trading, and fiat crosses;
- Margin efficiency: “Clients can utilize RLUSD as margin funding for perpetual futures and CFD trading;
- Secure custody: “RLUSD holdings will be accessible via LMAX Custody, utilizing segregated wallets to ensure fungibility and transferability across TradFi and digital assets;”
- Institutional on-ramps: “LMAX Kiosk will enable institutional on-ramps, allowing clients to trade multiple FX and digital products using RLUSD collateral;”
- 24/7 Links to Cross-Asset Markets: “Fungibility via RLUSD, which is not available with fiat today.”
The collaboration will include the integration of LMAX’s digital assets exchange with multi-asset prime broker Ripple Prime, officials say. “The combination of LMAX’s regulated exchange infrastructure and Ripple Prime’s credit and brokerage capabilities provides institutions with an efficient gateway to trade digital assets while addressing market fragmentation and counterparty risk.”
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