In a major move for institutional cryptocurrency adoption, Ripple has entered a multi-year strategic partnership with UK-based LMAX Group, anchored by a $150 million investment from Ripple to support LMAX's long-term cross-asset growth strategy. The core of the deal involves LMAX integrating Ripple's forthcoming U.S. dollar-pegged stablecoin, RLUSD, as a core collateral asset across its global institutional trading network.
The partnership, first reported by The Block on October 26, 2024, will enable banks, brokers, and buy-side firms to use RLUSD for margin and settlement across spot crypto, perpetual futures, CFDs, and certain fiat crosses. RLUSD will also be available through LMAX Custody using segregated wallets, allowing clients to move collateral across asset classes within the LMAX ecosystem.
David Mercer, CEO of LMAX Group, stated the partnership reflects growing regulatory clarity and the role fiat-backed stablecoins could play in institutional market structure, believing RLUSD is "positioned at the forefront" of the shift toward stablecoin-based collateral and settlement. Jack McDonald, Ripple's Senior Vice President of Stablecoins, emphasized that institutions are increasingly looking to blockchain-based infrastructure to modernize financial markets, noting the deal accelerates RLUSD use within one of the industry's largest institutional trading environments. LMAX Digital reported $8.2 trillion in trading volume last year.
The collaboration also includes integration between LMAX Digital and Ripple Prime, Ripple's multi-asset prime brokerage, giving Ripple Prime clients access to LMAX Digital as a price discovery venue with deep institutional liquidity. The companies stated the combined setup aims to reduce market fragmentation and counterparty risk for institutional traders.
This partnership follows Ripple's broader expansion of its enterprise footprint, having secured major licensing approvals globally, including a Major Payment Institution license in Singapore and a Virtual Asset Service Provider registration in Ireland. The deal is seen as a blueprint for merging traditional finance infrastructure with blockchain innovation to create more efficient global markets.
