Cryptocurrency group Ripple is entering the corporate treasury repo market through its recent $1 billion acquisition of treasury management system provider GTreasury, which followed other deals for prime broker Hidden Road at $1.25 billion and stablecoin platform Rail for $200 million. This will enable Ripple to provide a combined distributed ledger technology (DLT)-based platform to move, manage and optimize liquidity in real-time.
It continues a trend of crypto firms making vertical integration plays and seeking to become full-service financial infrastructure providers for institutions. These moves could spell major disruption for traditional financial (TradFi) firms in the corporate liquidity space. We evaluate Ripple’s comparative advantages and how real the threat of disruption is for repo market intermediaries.
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