Ripple Acquires Crypto-Friendly Prime Broker Hidden Road for $1.25B
April 8, 2025 – Blockchain-based payments network Ripple has officially announced its acquisition of crypto-friendly prime broker Hidden Road in a landmark deal valued at $1.25 billion. This acquisition not only marks one of the largest mergers in the cryptocurrency industry to date, but it also positions Ripple as the first crypto firm to own and operate a global, multi-asset prime broker.
Strategic Expansion in the Crypto Market
With the acquisition, Ripple aims to expand its footprint in the realm of cryptocurrency services, particularly highlighting its stablecoin, Ripple USD (RLUSD), which was recently introduced to institutional clients in December 2024. As stated in Ripple’s announcement, Hidden Road currently clears transactions exceeding $3 trillion annually across more than 300 institutions, reflecting the scale and depth of its operational capabilities.
Brad Garlinghouse, Ripple’s CEO, emphasized that the integration of Hidden Road under the Ripple umbrella will enhance the operational efficiency of both companies. This synergy will allow Hidden Road to leverage Ripple’s XRP and its associated decentralized public blockchain, the XRP Ledger (XRPL), which is set to streamline the clearing of trades significantly. Garlinghouse noted that transactions that traditionally required up to 24 hours to settle via fiat channels could now be executed using XRPL, marking a significant advancement in trade settlement speed and efficiency.
“Instead of waiting for up to 24 hours to settle trades through fiat rails, Hidden Road will be using XRPL for clearing a portion of trades, and most consequentially, using RLUSD as collateral across its prime brokerage services,” Garlinghouse stated in a post on X.
Ripple’s Commitment to Growth
Ripple’s leadership has indicated a deliberate commitment to pursuing mergers and acquisitions (M&A) rather than an initial public offering (IPO) in the near future. In a discussion at the Paris Blockchain Week 2025, Ripple President Monica Long confirmed the company’s focus on organic growth through strategic acquisitions to enhance its service offerings and market position.
“We are definitely a player in M&A right now,” Long remarked, suggesting that current market conditions and Ripple’s growth strategy are more conducive to this path than going public. “An IPO makes more sense for a company where you’re looking for more liquidity, and that’s not our constraint to growth right now.”
Navigating Regulatory Challenges
As cryptocurrency regulations evolve, Ripple’s acquisition of Hidden Road comes at a significant juncture in the U.S. digital assets landscape. Garlinghouse noted the positive changes under new leadership at the Securities and Exchange Commission (SEC), which he believes will facilitate a more promising environment for digital asset adoption.
“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 regulatory overhang of the former SEC coming to an end,” Garlinghouse stated. “With these tailwinds, we are continuing to pursue opportunities to massively transform the space.”
A Future of Enhanced Growth for Hidden Road
Marc Asch, founder and CEO of Hidden Road, conveyed optimism regarding the acquisition. He highlighted that the merger will provide Hidden Road with fresh resources, necessary licenses, and increased risk capital, which are expected to unlock substantial growth opportunities. This will allow them to extend their services, reach new markets, and broaden their product offerings in the rapidly evolving financial landscape.
“In a world where digital assets are maturing, this acquisition represents a significant growth opportunity for Hidden Road as we expand our capacity to serve our customer base,” Asch stated.
Conclusion
The acquisition of Hidden Road by Ripple signals a bold step towards strengthening the intersection of traditional finance and digital asset markets. This strategic alignment not only enhances Ripple’s operational capabilities but also positions them at the forefront of the evolving cryptocurrency landscape, promising to shape the future of finance.
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