Key Takeaways:
- Ripple acquires Hidden Road for $1.25B to boost institutional crypto services.
- Hidden Road will use RLUSD stablecoin and XRP tech for settlements.
- Regulatory shift in U.S. helps clear path for Ripple’s major expansion.
Ripple, a major player in the crypto space, has agreed to purchase prime brokerage firm Hidden Road for $1.25 billion. The deal, announced on April 8, aims to strengthen Ripple’s offerings for institutional investors. CEO Brad Garlinghouse highlighted the move as a step to meet rising demand from large financial institutions entering the digital asset market.
Garlinghouse noted:
“The price tag isn’t what’s most important – it’s that this deal marks a once-in-a-lifetime opportunity for crypto to access the largest and most trusted traditional markets, and vice versa.”
Notably, the transaction blends cash, XRP cryptocurrency, and Ripple stock to secure Hidden Road. Meanwhile, Marc Asch, who founded Hidden Road in 2018, will stay on to lead the firm under Ripple’s umbrella. Besides, Ripple plans to pour billions into scaling Hidden Road’s operations to handle growing market needs.
Stablecoin RLUSD Joins the Mix
Significantly, Hidden Road will adopt Ripple’s stablecoin, RLUSD, launched in December 2024, as collateral for its prime brokerage services. This integration aims to streamline transactions and boost efficiency. Additionally, the firm may tap the XRP blockchain to speed up settlement processes for its institutional clients.
Since its start, Hidden Road has cleared over $3 trillion in fund transfers in 2024 alone. The firm serves more than 300 institutional clients, including hedge funds, across markets like digital assets and foreign exchange. Consequently, its rapid growth caught Ripple’s attention after Hidden Road sought external funding to overcome balance sheet limits.
Garlinghouse expects the acquisition to wrap up by the third quarter of 2025, pending regulatory approvals. Moreover, a recent shift in the U.S. regulatory climate, including the SEC dropping a case against Ripple last month, has smoothed the path. This follows Donald Trump’s re-election, signaling a friendlier stance toward crypto policies.
Garlinghouse noted:
“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.”
