Uniquely, XRP can support liquidity between any two currencies, acting as a bridge asset. Photo: Shutterstock

We are excited to announce that we are partnering with Crypto Facilities, a leader in digital asset derivatives, to create a marketplace for XRP derivatives. As with other assets or financial products around the world, participants desire the ability to manage their risk. An XRP derivatives market enables both hedging and speculative positioning in XRP. It also contributes to price discovery and market efficiency in XRP.

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Crypto Facilities is a London-based financial services firm that provides FCA-regulated risk management and trading solutions for digital assets. Crypto Facilities’ products emphasize functionality, counterparty credit risk protection, and secure asset custody. We look forward to bringing these features to XRP derivative offerings on Crypto Facilities’ marketplace.

In Building Network Effects on Ripple and The Cost-Cutting Case for Banks, we discussed the value proposition for XRP as a highly efficient bridge currency that enhances network effects and market depth across currency conversions on Ripple and in the developing Internet of Value. In order to support this use case, banks and market makers that provide liquidity may need to hold XRP in significant size and thus need a way to manage volatility.

Ripple’s partnership with Crypto Facilities plays a key role as we commercialize XRP for institutional use cases. Look out for more details in the coming months.

Learn more about XRP here.