Ripple Acquires Hidden Road for $1.25 Billion, Expands Institutional Crypto Services

Ripple has made a significant strategic move by acquiring Hidden Road, a leading prime brokerage firm, for $1.25 billion. This acquisition positions Ripple as the first crypto company to fully own and operate a global, multi-asset prime brokerage platform, bridging the gap between traditional finance and the digital asset space. The deal allows Ripple to offer institutional clients a seamless experience in accessing a wide range of financial instruments, including foreign exchange, crypto, swaps, and fixed income.

Hidden Road, known for its robust services and extensive client base, processes an impressive $3 trillion annually and serves over 300 of the world’s top financial institutions. This acquisition comes at a pivotal time as the U.S. regulatory environment for cryptocurrencies begins to stabilize, providing Ripple with a favorable window for institutional growth. Ripple CEO Brad Garlinghouse highlighted the significance of this moment, stating, "We are at an inflection point for the next phase of digital asset adoption. The US market is effectively open for the first time due to the regulatory overhang of the former SEC coming to an end, and the market is maturing to address the needs of traditional finance."

With Ripple’s strong financial backing and extensive regulatory licenses, Hidden Road is expected to expand aggressively, enter new markets, and handle larger client demands. The deal also brings Ripple’s upcoming stablecoin, RLUSD, into the spotlight. Hidden Road plans to use RLUSD as collateral for trading products, making it the first USD-backed stablecoin to support cross-margining between crypto and traditional finance. This integration is set to enhance the efficiency and cost-effectiveness of post-trade operations, as Hidden Road’s services will now be powered by XRPL, Ripple’s native blockchain.

The acquisition is also expected to bolster Ripple’s cross-border payments platform and its custody offerings for institutional clients. Marc Asch, CEO of Hidden Road, expressed optimism about the deal, stating, "Together with Ripple, we’re bringing the same level of trust and reliability that institutional clients are accustomed to in traditional markets — designed and optimized for a digital world." This strategic move by Ripple underscores its commitment to driving the adoption of digital assets and integrating them into the broader financial ecosystem.

This acquisition marks the second billion-dollar crypto deal of the year, following Kraken’s purchase of retail futures trading platform NinjaTrader for $1.5 billion in March. These acquisitions come at a time when the crypto industry is optimistic over relaxed crypto regulations. The deal also highlights Ripple’s growing influence in the digital asset space, positioning it as a major player in real-world finance. The integration of RLUSD as collateral across Hidden Road’s services further solidifies Ripple’s role in the stablecoin market, enabling smooth cross-margining between crypto and traditional markets.