[DigitalToday reporter Yoonseo Lee] Ripple has launched a 24/7 stock trading service for institutional clients and has also activated a lending function that uses its stablecoin RLUSD as collateral.

U.Today, a blockchain media outlet, reported on Tuesday that Ripple will allow institutional investors to trade stocks 24 hours a day through its prime brokerage platform, Ripple Prime. It will also allow Ripple USD (RLUSD) to be used as collateral for trading positions.

The move is significant in that it expands RLUSD use from payments and treasury management to institutional trading and funding. Institutions using Ripple Prime can now post RLUSD as collateral to manage stock positions. Ripple plans to reduce institutions' reliance on the traditional banking system and improve efficiency in position management and capital movement.

The market is watching whether using it as trading collateral could lead to wider adoption of RLUSD. As the stablecoin, previously used mainly for payments and reserve management, is used as a collateral asset supporting institutional stock trading, some see its role in financial markets as having broadened.

Still, it is unclear whether the 24/7 stock trading service will immediately translate into large demand for RLUSD. There are concerns that prices could swing sharply when processing large orders if there are not enough buyers and sellers.

A lack of liquidity could also weigh on Ripple Prime. Institutional investors need sufficient buy and sell volume to smoothly process large orders regardless of time zone. In illiquid markets, large trades can move prices sharply, raising concerns that institutions' use of the 24/7 trading service could face constraints.

The service launch also dovetails with Ripple's push to strengthen its institutional business. Ripple is upgrading services targeting global institutional clients, and with this announcement it put RLUSD forward not just as a payment tool but as an asset linked to trading collateral and financial operations. The pace of actual adoption is expected to depend on institutional demand and whether liquidity can be secured in a 24/7 stock market.

JUST IN: Ripple launches 24/7 institutional stock trading via Ripple Prime, accepting $RLUSD as collateral. https://t.co/QKT3EX8Bpn