- Ripple becomes the first crypto firm with a global multi-asset prime broker.
- Its acquisition boosts Hidden Road’s $3 trillion clearing operations.
Ripple has announced its acquisition of Hidden Road, a prominent crypto-friendly prime broker, for $1.25 billion. The deal will be settled through a combination of cash, XRP tokens, and Ripple stock. Pending regulatory approval, the new acquisition is projected to finalize its process within the upcoming months. The acquisition of Hidden Road by Ripple led Marc Asch to maintain leadership of the prime brokerage division through Ripple following the transaction completion.
Ripple Becomes First Crypto Firm with Global Multi-Asset Prime Broker
The deal ranks among the biggest transactions ever made in the cryptocurrency market. Ripple plans to reach out to institutional investors through the acquisition of Hidden Road because the company is well known for prime brokerage services. Ripple aims to expand its leadership position in financial institution digital payments by implementing prime brokerage solutions. The services acquired are fundamental elements that will drive digital asset sector growth during the current penetration of traditional institutions into crypto markets.
In addition, Ripple establishes its position as the inaugural cryptocurrency organization that functions with a worldwide prime brokerage platform for multiple assets. Hidden Road operates as a fast-expanding worldwide prime broker with services including clearance, along with prime brokerage and funding provisions.
Hidden Road offers support across several asset groups, which include foreign exchange (FX), digital assets, and derivatives, along with swaps and fixed income. The integrated service portfolio from Ripple and Hidden Road establishes a professional trading foundation that institutional adoption of digital assets demands.
Ripple Capitalizes on Market Growth with Hidden Road Acquisition
The clearing operations of Hidden Road reach over $3 trillion annually to serve more than 300 institutional clients. The financial support from Ripple enables Hidden Road to grow its capacity, which will establish it as the largest independent prime broker in the global market. Ripple’s financial support will drive Hidden Road’s expansion, which will enable the company to extend services to numerous institutional clients and offer diverse financial products.
Ripple’s CEO, Brad Garlinghouse, expressed that the timing of this acquisition is ideal, as the U.S. market is now more open to digital asset growth. He noted that the regulatory uncertainties surrounding the market are subsiding, creating an opportunity for Ripple to capitalize on its position. Garlinghouse emphasized that Ripple’s strengths, particularly XRP, would help accelerate its business and enhance its existing solutions, enabling further transformation in the digital asset space.
A key feature of this acquisition is the integration of Ripple’s stablecoin, RLUSD. RLUSD serves as collateral when Hidden Road makes use of prime brokerage services from the company. RLUSD establishes itself as the initial stablecoin solution that supports effective borrowing between digital funds and traditional market financial instruments. Additionally, Hidden Road will migrate its post-trade activities to the XRP Ledger (XRPL), reducing operational costs and improving efficiency.
Ripple to Offer Secure Digital Asset Custody Services to Hidden Road Clients
On the other hand, Ripple Payments solutions, along with other cross-border payment features, will gain advantages from this purchase. Ripple will serve as the trusted provider of secure digital asset storage through essential custody services to all Hidden Road clients who need bank-level protection. This acquisition will increase Ripple’s ability to provide its institutional customers with better services.
Hidden Road founder Marc Asch believes the recent transaction will open new pathways to expand his company’s growth potential. The addition of Ripple’s resources along with its licensing capabilities will enable Hidden Road to build new business sectors as it extends its services throughout different markets. The partnership provides institutional clients with traditional market reliability standards while offering digital world-specific optimization, according to Asch.
Ripple’s experience and its strong regulatory presence, with over 60 licenses across various jurisdictions, position it as a leader in digital asset infrastructure. The acquisition process toward completion remains subject to regulatory approvals before it closes within upcoming months, thereby advancing Ripple’s efforts to connect traditional finance with decentralized finance.
