Ripple Acquires Hidden Road for $1.25 Billion, Expanding Its Reach in Crypto Brokerage
This move positions Ripple as a pioneer in the digital assets space, marking the companys entry into the world of multi-asset primary brokerage services.
The Deal and Ripples New Strategic Advantage
The acquisition will be primarily settled in cash, XRP tokens, and company stock, and is expected to close within the next few months, pending regulatory approval. This acquisition stands as one of the largest in the crypto industry, further solidifying Ripples position as a dominant player in the digital asset ecosystem.
With this deal, Ripple becomes the first cryptocurrency company to own and operate a global, multi-asset primary brokerage firm. Hidden Road is known for providing a range of advanced services to institutional clients, including clearing, prime brokerage, and financing across various sectors such as foreign exchange (FX), digital assets, derivatives, swaps, and fixed income.
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Hidden Roads Growth and Ripples Vision for XRPL
Hidden Road is one of the fastest-growing primary brokerages globally, handling a staggering $3 trillion in annual trades and serving over 300 institutional clients. As part of the acquisition, Ripple will integrate Hidden Roads post-trade activities into the XRP Ledger (XRPL), enhancing operational efficiency and reducing costs. This move also underscores Ripples ambition to position XRPL as the blockchain of choice for enterprise decentralized finance (DeFi).
Additionally, Hidden Road plans to use Ripple USD (RLUSD) as collateral in its primary brokerage products, further expanding Ripples role in institutional crypto services.
Ripple CEO Brad Garlinghouses Statement
Ripple CEO Brad Garlinghouse expressed his excitement about the acquisition, stating, 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 increased regulatory clarity, and the market is maturing to meet the needs of traditional finance.
Garlinghouse emphasized that the acquisition aligns with Ripples long-term goals to transform the crypto space and accelerate business growth, leveraging XRPs strengths to enhance existing solutions and technology.
This acquisition marks a significant step in Ripples broader strategy to capitalize on the growing digital asset market and position itself at the forefront of the evolving financial landscape.
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Text source: Coindoo
