Ripple Takes the Lead with $1.25B Acquisition of Hidden Road

• Ripple acquires Hidden Road for $1.25B, becoming a global multi-asset prime broker.
• The deal bridges traditional finance with DeFi, expanding Ripple’s market presence.
• Hidden Road to use Ripple USD for cross-margining, making RLUSD the first stablecoin.

Ripple, a leading digital asset infrastructure provider, has acquired Hidden Road for $1.25 billion. This marks one of the largest deals in the digital asset industry. With the acquisition, Ripple became the first crypto company to own and operate a global multi-asset prime broker. Hidden Road is known for its fast growth, clearing, brokerage, and financing services.

Bridging Traditional and DeFi

The deal assists Ripple in connecting the traditional financial system with decentralized finance applications. Hidden Road is a financial firm specializing in foreign exchange (FX), digital assets, derivatives, and other services. It facilitates over $3 trillion in clearing every year and caters to 300+ institutions worldwide. Thus, Ripple’s investment should help Hidden Road increase its global capacity and services.

Ripple’s CEO Brad Garlinghouse referred to this as a turning point for digital asset adoption. He highlighted that the new regulations bring greater transparency to the U.S. market. Building on this momentum, Ripple is well-positioned to capitalize on these changes, using its strengths and the advantages of XRP to fuel innovation and drive growth.

The acquisition also boosts Ripple USD (RLUSD), Ripple’s USD-backed stablecoin. Hidden Road will use RLUSD as collateral across its prime brokerage products. This makes RLUSD the first stablecoin to facilitate efficient cross-margining between digital assets and traditional finance markets.

XRPL Blockchain Integration

Hidden Road will migrate its post-trade activities to Ripple’s XRPL blockchain. This shift aims to streamline operations and cut costs. Ripple’s blockchain technology has proven to be reliable for institutional DeFi. It will also provide cost-effective liquidity and custody services for Hidden Road’s clients.

Related: Ripple Expands in UAE with DFSA License for Crypto Services

Marc Asch, CEO of Hidden Road, praised the deal. He said Ripple’s resources, licenses, and capital will unlock new growth opportunities. With Ripple’s support, Hidden Road will expand its product offerings and enter new markets. 

Together with Ripple, we’re bringing the same level of trust and reliability that institutional clients are accustomed to in traditional markets.

Ripple has several years of field experience and relevant licenses from the concerned regulatory authorities. It currently has more than 60 different licenses in different jurisdictions. This acquisition makes Ripple a market leader in the digital asset industry as it expands into new frontiers. The acquisition is expected to be concluded in the next few months, subject to regulatory approval.

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