Ripple Acquires Crypto-Friendly Prime Broker Hidden Road for $1.25B

Ripple, the blockchain-based payments network, has made a major move by acquiring the crypto-friendly prime broker Hidden Road in a $1.25 billion deal. This acquisition is one of the largest-ever in the crypto industry, solidifying Ripple's growing presence in the traditional finance sector.

A Strategic Acquisition to Become a Multi-Asset Prime Broker

With Hidden Road's impressive $3 trillion in clearing services across more than 300 institutions, Ripple is set to become the first cryptocurrency company to own and operate a global, multi-asset prime broker. This acquisition positions Ripple to take on a prominent role in the financial services industry, with expectations that the newly formed entity will become the largest non-bank prime broker in the world.

Ripple’s acquisition of Hidden Road not only strengthens its position in the financial ecosystem but also aligns with its broader vision to enhance its digital asset solutions. Ripple USD (RLUSD) stablecoin, which was launched in December 2024 for institutional use, is also expected to benefit significantly from the integration of Hidden Road’s infrastructure and services.

Ripple's Vision Amid U.S. Regulatory Shifts

Ripple CEO Brad Garlinghouse sees the acquisition as a pivotal step toward the next phase of digital asset adoption. He emphasized that the deal comes at a time when the U.S. regulatory landscape is shifting, particularly with the Securities and Exchange Commission (SEC) under new leadership.

"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," Garlinghouse said. He added that the acquisition would help Ripple leverage the unique strengths of XRP to accelerate growth and expand its offerings.

This strategic move is a clear signal that Ripple plans to continue expanding its footprint in the traditional finance sector, with a focus on transforming the digital asset space and driving mainstream adoption of cryptocurrency solutions.

Hidden Road's Growth Potential

Marc Asch, the founder and CEO of Hidden Road, expressed optimism about the future of the company post-acquisition. He noted that the infusion of new resources, licenses, and added risk capital would unlock significant growth opportunities. Asch believes that this acquisition will enable Hidden Road to increase its capacity, expand into new products, and service more markets and asset classes.

The acquisition of Hidden Road allows Ripple to diversify its services and better cater to the evolving needs of both crypto and traditional financial markets. This marks a significant milestone in Ripple mission to bridge the gap between digital assets and mainstream financial institutions.