Ripple's Hidden Road Secures FINRA Approval, Expands Institutional Services

Ripple’s recent acquisition of Hidden Road has taken a significant step forward with the firm securing approval from the Financial Industry Regulatory Authority (FINRA) to operate as a broker-dealer. This approval enables Hidden Road to offer a suite of compliant prime brokerage, clearing, and financing services in fixed-income assets to institutional clients. The development is seen as a strategic move that enhances Ripple’s ecosystem, particularly in relation to its RLUSD stablecoin and XRP cryptocurrency.

The FINRA approval is a major milestone for Hidden Road, allowing the firm to expand its fixed income prime brokerage platform. This platform includes services such as Fixed Income Repo and Global Funding, designed to provide institutional clients with comprehensive, technology-driven solutions. Noel Kimmel, President of Hidden Road, highlighted that becoming a FINRA member allows the firm to extend its fixed income services to a broader range of institutional clients, demonstrating the company’s momentum and commitment to supporting clients in a dynamic market environment.

Ripple announced its definitive agreement to acquire Hidden Road for $1.25 billion on April 8, 2025. This acquisition is one of Ripple’s largest to date and positions the company as the only crypto firm operating a global multi-asset prime brokerage. Hidden Road processes $3 trillion annually across financial markets and serves over 300 institutional clients. With Ripple’s backing, Hidden Road aims to expand its capacity to service its pipeline and become one of the largest non-bank prime brokers globally. The deal is expected to close in the coming months, subject to regulatory approvals.

The acquisition also enhances the utility of Ripple’s U.S. dollar-pegged stablecoin, RLUSD. Hidden Road plans to use RLUSD as collateral across its prime brokerage products, facilitating cross-margining between digital assets and traditional markets. This integration is part of Ripple’s strategy to compete with established stablecoin providers and to provide more efficient settlement processes through the XRP Ledger.

King Solomon’s announcement underscores the strategic significance of Hidden Road’s FINRA approval and its acquisition by Ripple. These developments reflect Ripple’s commitment to expanding its services to institutional clients and integrating traditional financial systems with digital asset infrastructure. As the acquisition progresses, Ripple and Hidden Road are poised to play a pivotal role in the evolving landscape of institutional finance.