Highlights:
- Ripple’s $1.25B acquisition of Hidden Road expands its role in global prime brokerage.
- The firm will integrate its stablecoin, RLUSD, into Hidden Road’s services to enhance its financial offerings.
- Hidden Road’s $3 trillion annual clearing volume positions Ripple as a leader in institutional finance.
Ripple has just announced that it is acquiring Hidden Road, a prime brokerage firm, for $1.25 billion. This is considered to be one of the biggest acquisitions within the world of digital assets. Ripple is well poised to be the first cryptocurrency company to operate a global multi-asset prime broker. The deal will bolster Ripple’s position in integrating traditional finance (TradFi) with decentralized finance (DeFi) to offer additional services to financial institutions.
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Ripple Expands Institutional Services
The acquisition of Hidden Road is a major step forward in Ripple’s plans to break into the sector of institutional finance. Hidden Road is an emerging company that currently clears over $3 trillion every year. Over 300 institutional clients utilize its services in areas of prime brokerage, clearing, and financing for different types of assets. This acquisition will enable Hidden Road to enhance its ability to provide services to its clients as well as penetrate new markets and offer new products and services.
Today, Ripple announced it is acquiring Hidden Road for $1.25B– becoming the first crypto company to own and operate a global, multi-asset prime broker. Together, Ripple and Hidden Road are bringing the promise of digital assets to institutional customers at scale, bridging…
— Ripple (@Ripple) April 8, 2025
The substantial capital investment from Ripple will allow Hidden Road to grow its operation and serve more clients. The company intends to use Hidden Road to become one of the largest global non-bank prime brokers. This acquisition also presents an opportunity for the firm to build out its technology and ‘compliance-first’ strategy. It is important in the adoption of digital assets in institutional finance.
Integration of RLUSD Stablecoin
The acquisition also boosts Ripple’s stablecoin, RLUSD, which Hidden Road will use in its business operations. By offering RLUSD as a form of collateral in its prime brokerage services, Hidden Road has made a major advancement. Ripple’s stablecoin will be the first cryptocurrency to allow cross-margin between crypto and traditional financial markets. Furthermore, this will effectively deepen its status as a reliable stablecoin backed by USD for institutional users as well.
Hidden Road’s post-trade services will be migrated to the XRPL, making the company’s operations more effective. The integration will help Hidden Road coordinate its activities, cut costs and enhance liquidity. Implementing Ripple’s blockchain solution will enable Hidden Road to improve its functionality, which will, in turn, make it easier and quicker to assist clients.
Ripple’s Growing Influence in Digital Finance
This is the largest acquisition by Ripple to date and demonstrates the company’s dedication to increasing the application of digital assets. The firm has long-standing relations with Hidden Road, and it has realized the power of the broker’s services.
Ripple’s CEO, Brad Garlinghouse, noted that this decision is pivotal in transforming the existing financial environment. According to him, the changing regulation of the U.S. market creates new opportunities for the use of digital assets. Ripple intends to leverage this to continue its growth and to extend the range of its services.
Today, @Ripple announced the acquisition of Hidden Road for $1.25B, one of the largest deals ever in the crypto space. But the price tag isn’t what’s most important – it’s that this deal marks a once-in-a-lifetime opportunity for crypto to access the largest and most trusted…
— Brad Garlinghouse (@bgarlinghouse) April 8, 2025
The incorporation of Hidden Road’s services and technologies into Ripple further bolsters it in the digital finance sector. With the enhancement from a regulatory standpoint, Ripple could step up its control in both traditional and decentralized financial industries. This acquisition is well aligned with the next phase of growth in digital asset investment, which also serves institutional clients and helps them find a way to blend their financial services with digital asset platforms.
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