Ripple has announced its acquisition of the crypto-friendly prime brokerage, Hidden Road, for $1.25 billion, marking one of the most substantial transactions in the digital asset sector.
With this strategic acquisition, Ripple positions itself as the first cryptocurrency firm to establish and manage a global, multi-asset prime broker. This new venture will offer a comprehensive range of services tailored for institutional clients, including clearing, prime brokerage, and financing across various securities such as foreign exchange (FX), digital assets, derivatives, swaps, and fixed income.
Hidden Road boasts a robust business operation, clearing an impressive $3 trillion annually across diverse markets and serving over 300 prestigious institutional clients. Ripple, having previously participated in Hidden Road’s Series B funding and utilizing its platform, intends to infuse substantial capital into the business to ensure rapid scaling.
Brad Garlinghouse, CEO of Ripple, noted, “We are at a pivotal moment for the next wave of digital asset adoption. The U.S. market is effectively opening up, following the resolution of regulatory uncertainties that previously inhibited progress. As the market evolves to meet the demands of traditional finance, we are actively seeking opportunities to significantly reshape the landscape, capitalizing on our strengths and the capabilities of XRP to enhance our offerings.”
The deal also strengthens Ripple’s USD-backed stablecoin, RLUSD, which already serves essential roles in Hidden Road’s prime brokerage operations. This positions RLUSD as the first stablecoin capable of facilitating cross-margining between the digital asset industry and traditional financial markets.
In addition, Hidden Road plans to transition its post-trade activities onto Ripple’s DeFi blockchain, XRPL, while integrating Ripple’s payment solutions for improved liquidity and offering digital asset custody services to its institutional clients.
“Through this partnership, enhanced resources, regulatory licenses, and additional risk capital will drive significant growth for Hidden Road,” remarked Marc Asch, founder and CEO of Hidden Road. “We aim to expand our service capacity, diversify our product offerings, and extend our reach across various markets and asset classes. Together with Ripple, we are committed to delivering the same level of trust and reliability that institutional clients expect from traditional financial environments, optimized for the digital age.”
The announcement comes in light of Standard Chartered’s forecast predicting that Ripple’s digital token, XRP, could rise to $12.50 by the end of 2028, significantly higher than its current value of $1.94.