1/Last episode, we said that once collateral, leverage, securities borrowing, and liquidation are on-chain, together they start to look like an on-chain prime brokerage business.
This time, let's ask it differently: Will it really emerge? The answer is: It's already emerging, just not in the way most people imagine. Not “smart contracts replacing prime brokers,” but “prime brokers using smart contracts as their execution layer.”
2/ The key case study: Ripple Prime × Hyperliquid
Ripple acquired established prime broker Hidden Road for $1.25 billion and renamed it Ripple Prime, reportedly with an annual clearing volume of over $3 trillion. On February 4 this year, Ripple Prime announced its integration with Hyperliquid, allowing institutional clients to access on-chain perpetuals liquidity through the same PB interface and combine these DeFi positions with FX, fixed income, OTC swaps, and cleared derivatives under portfolio margin.