Catenaa, Saturday, April 12, 2025-Ripple has announced the acquisition of prime brokerage firm Hidden Road for $1.25 billion, marking a significant step in its strategy to bridge traditional finance with decentralized finance.
This deal makes Ripple the first cryptocurrency company to own and operate a global, multi-asset prime broker. Hidden Road, which clears over $3 trillion annually and serves more than 300 institutional clients, offers a range of services including prime brokerage, clearing, and financing across foreign exchange, digital assets, derivatives, and fixed income.
Ripple’s acquisition aims to expand its institutional services and enhance its infrastructure as part of its broader push to integrate digital assets into traditional financial markets. The acquisition will also see Ripple’s stablecoin, RLUSD, integrated into Hidden Road’s collateral system for cross-margining between digital and traditional markets, further strengthening its role as a USD-backed collateral asset for institutions.
Ripple’s CEO Brad Garlinghouse emphasized that the deal is a pivotal moment for the future of digital asset adoption, especially with increasing regulatory clarity and maturing market infrastructure in the U.S. Ripple’s recent settlement with the U.S. Securities and Exchange Commission (SEC) has also paved the way for this expansion, with the company paying a $50 million penalty and resolving a lengthy legal dispute.
Hidden Road will also migrate its post-trade operations to the XRP Ledger, leveraging Ripple’s technology to enhance efficiency and scalability. The acquisition underscores Ripple’s commitment to reshaping global financial systems, particularly in underdeveloped regions.
