HSBC Researcher Sees Basis Trades Leading Ripple Prime's 24/7 Swaps

HSBC head of digital assets research Daragh Maher expects specialist traders to lead activity in Ripple Prime’s round-the-clock swaps, questioning whether the markets can support large institutional hedges. Maher expects market makers, proprietary traders and hedge funds pursuing basis trades to account for much of the early activity. Basis trades involve related positions designed to capture differences in their prices. Institutions using the swaps for broader portfolio hedges would need to be able to enter and adjust large positions at workable prices. The assessment adds a question about demand to the earlier coverage of Ripple Prime’s swap launch .

Source: TokenPost