Ripple Labs has announced its intention to acquire the crypto-friendly prime broker Hidden Road for $1.25 billion. This deal will be one of the largest in the cryptocurrency sector and aims to attract institutional investors.
This is reported by Finway
Ripple’s CEO, Brad Garlinghouse, emphasized that the integration of Hidden Road will enhance the company’s infrastructure for collaboration with major financial institutions. This deal, which includes payment in cash, XRP tokens, and Ripple stock, is expected to close in the coming months pending regulatory approval.
“Today, Ripple announced it is acquiring Hidden Road for $1.25B– becoming the first crypto company to own and operate a global, multi-asset prime broker. Together, Ripple and Hidden Road are bringing the promise of digital assets to institutional customers at scale, bridging…”
Hidden Road’s founder, Mark Ash, will remain at the helm of the company after the deal is finalized. Ripple also plans to invest billions of dollars to scale its brokerage services and meet growing demand. Hidden Road will use the stablecoin RLUSD as collateral for its products and will consider utilizing the XRP Ledger blockchain to optimize settlements.
This will strengthen the synergy between the platforms and accelerate the adoption of Ripple’s products in the prime brokerage sector. Given the positive changes in the regulatory environment in the U.S., including statements from former President Donald Trump supporting cryptocurrencies, institutional players are increasingly entering the digital asset market.
Experts note that companies like Fidelity and BNY Mellon are expanding their offerings, making prime brokers important intermediaries. Founded in 2018, Hidden Road serves hedge funds and large investment funds, specializing in cryptocurrency and currency transactions.
In 2024, the company’s transaction volume exceeded $3 trillion. Previously, Hidden Road raised $50 million from investment firms, including Castle Island Ventures, Coinbase, and Citadel Securities.
According to Bloomberg, since March, Hidden Road has been exploring options for a sale or capital raise. Ripple’s acquisition will enable both companies to strengthen their positions in the growing crypto market.
Additionally, it is worth mentioning that the U.S. Securities and Exchange Commission will return a significant portion of the $125 million fine paid by Ripple in response to the regulator’s lawsuit.