Ripple has officially acquired Hidden Road for $1.25 billion, marking one of the biggest transactions in the cryptocurrency industry. This acquisition makes Ripple the first crypto company to own and operate a global, multi-asset prime broker.
Brad Garlinghouse reacted to the news on Twitter, calling it “one of the largest deals ever in the crypto space.” He emphasized that this move represents a rare opportunity for the crypto industry to integrate seamlessly with traditional financial markets.
Ripple has worked with Hidden Road for years, clearing over $3 trillion annually across multiple markets. With more than 300 top institutional customers, Ripple views this acquisition as a strategic move to enhance liquidity and reduce costs in its Ripple Payments solution. Additionally, the company aims to provide bank-level digital asset custody services to Hidden Road’s institutional clients.
Billions in Capital to Scale Hidden Road’s Prime Brokerage
To meet the growing demand for Hidden Road’s prime brokerage, clearing, and financing platform, Ripple will inject billions of dollars in capital. This investment will significantly expand Hidden Road’s operational capacity and accelerate its global reach.
Related article: Ripple Takes Bold Step in Institutional Crypto Custody with BDACS
Hidden Road will migrate post-trade activities to the XRP Ledger (XRPL), showcasing its capability as a leading blockchain for institutional decentralized finance (DeFi). Ripple CEO Garlinghouse highlighted XRPL’s strengths, including instant transactions, scalability, and cost efficiency. Unlike traditional fiat rails that take up to 24 hours to settle trades, Hidden Road will use XRPL for faster and more efficient trade clearing.
RLUSD to Bridge Crypto and Traditional Markets
Hidden Road will also adopt RLUSD as collateral across its prime brokerage services. This marks a significant milestone, making RLUSD the first stablecoin to facilitate seamless cross-margining between digital assets and traditional financial instruments. By integrating RLUSD, Ripple strengthens its vision of bridging crypto with mainstream financial markets.
This acquisition signals Ripple’s commitment to expanding its influence in institutional finance while demonstrating XRPL’s potential in transforming traditional market operations.
