Ripple Confirms Acquisition of Hidden Road for $1.25 Billion
Ripple, the renowned asset manager in the cryptocurrency sector, confirmed the acquisition of Hidden Road, a prime brokerage that stands out for its rapid growth and pro-crypto stance. The deal is valued at an impressive $1.25 billion and is expected to close in the coming months, subject to regulatory approval. This move marks one of the most significant transactions in the cryptocurrency space to date.
Strategic Expansion into Multi-Asset Prime Exchange
With this strategic acquisition, Ripple becomes the first company in the industry to operate a global, multi-asset prime exchange. This expansion was highlighted in the company’s recent announcement.
Advanced Acquisition Discussions Prior to Announcement
Hidden Road was reportedly in advanced acquisition discussions prior to the announcement. Last week, CoinDesk revealed that the exchange, which deals in both traditional and digital assets, had received an unsolicited purchase proposal from an unidentified crypto player.
A Valuable Addition to Ripple’s Portfolio
Known for serving over 300 institutional clients and moving over $3 trillion annually in transactions that include foreign exchange, digital assets, derivatives, and fixed income, Hidden Road will be a valuable addition to Ripple’s already robust portfolio.
Maturation of the Cryptocurrency Market
This agreement comes at a time of maturation of the cryptocurrency market, which increasingly mirrors the complexity and sophistication of traditional finance.
Remarks by Brad Garlinghouse, CEO of Ripple
“We are at an inflection point for the next phase of digital asset adoption – the U.S. market is effectively open for the first time due to the end of the regulatory burden of the former SEC, and the market is maturing to meet the needs of traditional finance,” explained Brad Garlinghouse, CEO of Ripple.
Expansion of Ripple’s Stablecoin
The acquisition will allow Ripple to significantly expand the presence of its flagship stablecoin, Ripple USD (RLUSD), which will now be used as collateral in Hidden Road’s brokerage products. This development also positions RLUSD as the first stablecoin to facilitate efficient cross-margining between traditional and digital markets, a major milestone for unified institutional trading, according to Ripple.
Post-Trade Operations Moving to XRP Ledger
Additionally, Hidden Road plans to move its post-trade operations to the XRP Ledger (XRPL), which Ripple says will lower costs and improve scalability for large-volume institutional finance.