LMAX Group Partners with Ripple to Integrate RLUSD Stablecoin into Payment Infrastructure
Financial technology company LMAX Group has announced a significant partnership with blockchain payment leader Ripple, backed by a $150 million investment from the crypto firm. The integration of Ripple’s RLUSD stablecoin into LMAX’s payment infrastructure is aimed at providing new trading solutions for its global clientele, including banks, brokers, and buy-side institutions.
The partnership will enable LMAX’s clients to utilize RLUSD for improved cross-collateralization and margin efficiency across various trading types, such as spot cryptocurrencies, perpetual futures, and contracts for difference (CFDs). According to David Mercer, the Chief Executive Officer of LMAX Group, this partnership is a milestone for the company, reflecting confidence and momentum in its cross-asset growth strategy.
New Trading Solutions with RLUSD
The integration of RLUSD will serve as a foundational collateral asset within LMAX’s institutional trading framework. This will allow clients to use RLUSD for spot crypto trading and fiat transactions, as well as for margin funding for perpetual futures and contracts for difference trading. Additionally, RLUSD holdings will be accessible through LMAX Custody, utilizing segregated wallets to ensure fungibility and transferability across traditional finance and digital assets.
The LMAX Kiosk feature will also facilitate institutional on-ramps, allowing clients to engage in trading multiple foreign exchange and digital products using RLUSD as collateral. This will enable 24/7 access to cross-asset markets. Jack McDonald, Senior Vice President of Stablecoins at Ripple, commented on the partnership, noting that it will accelerate the utilization of RLUSD within one of the largest and most sophisticated trading environments.
Benefits of the Partnership
The partnership between LMAX Group and Ripple offers several advantages for clients. Enhanced liquidity is one benefit, as RLUSD will function both as collateral and a settlement currency for spot crypto trading and fiat transactions. Clients will also have the opportunity to use RLUSD as margin funding for perpetual futures and contracts for difference trading, thereby improving margin efficiency.
Security will also be a priority, with RLUSD holdings being accessible through LMAX Custody. This will utilize segregated wallets to ensure both fungibility and transferability across traditional finance and digital assets. Furthermore, the integration of LMAX’s digital asset exchange with Ripple Prime will provide institutions with a streamlined gateway to trade digital assets while effectively managing market fragmentation and counterparty risk.
The daily chart shows XRP’s price retrace. Source: XRPUSDT on TradingView.com. At the time of writing, the associated Ripple token, XRP, is trading at $2.09, having retraced by almost 3% in the past 24 hours.
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