Ripple Acquires Hidden Road for $1.25 Billion: A Bet on Institutional Markets

Ripple has announced the acquisition of multi-asset prime broker Hidden Road for $1.25 billion, making one of the largest deals in the history of the digital asset industry. This purchase marks a strategic step for Ripple to strengthen its position in the global crypto market and further converge traditional finance with decentralized technologies.

Ripple CEO Brad Garlinghouse noted that the United States is becoming an increasingly favorable jurisdiction for the development of the crypto industry due to the easing of regulatory barriers. According to him, the integration of Hidden Road into the Ripple ecosystem is aimed at supporting the institutional adoption of digital currencies and creating a reliable financial infrastructure that will unite traditional finance and crypto assets.

Integration of resources and expansion of opportunities

The deal opens up access for Hidden Road to Ripple’s significant financial and technological resources, which will allow the broker to claim the role of the largest non-bank prime broker in the world. Particular attention is paid to the integration of the Ripple USD (RLUSD) stablecoin into Hidden Road’s product line as collateral for trades. This will increase its liquidity and provide a strong link between traditional and digital financial markets.

Hidden Road serves over 300 institutional clients and annually clears approximately $3 trillion in transactions. The company has already established itself as a reliable partner in the areas of FX trading, derivatives, and digital assets. By collaborating with Ripple, Hidden Road will migrate its post-trade processes to the XRP Ledger (XRPL) blockchain, which will reduce costs, speed up trade processing, and improve overall operational efficiency.

Ripple Strengthens Cross-Border Payments Solutions

For Ripple, this partnership will open up additional opportunities to optimize solutions for international transfers. Ripple also plans to offer Hidden Road clients premium digital asset custody services with a level of security that meets banking standards.

Brad Garlinghouse has previously emphasized that blockchain technology and cryptocurrencies have the potential to radically transform international payments and improve the structure of the global financial system. The acquisition of Hidden Road is a clear confirmation of this strategy, demonstrating Ripple’s ambitions to build a financial bridge between the traditional and digital economies.