Ripple Labs has announced the acquisition of 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. As noted by Ripple CEO Brad Garlinghouse, the integration will open new opportunities for working with large financial institutions.
This is reported by Business • Media
“Today, Ripple announced the acquisition of Hidden Road for $1.25 billion, becoming the first crypto company to own and operate a global, multi-asset prime broker,” said Ripple in a statement.
The deal, which involves payment in cash, XRP tokens, and Ripple shares, awaits regulatory approval and is expected to close in the coming months. Hidden Road founder Mark Ash will remain as the company’s head. Ripple also plans to invest billions of dollars to scale its brokerage services in response to growing demand.
Hidden Road will use the stablecoin RLUSD as collateral for its products and will consider implementing the XRP Ledger blockchain to enhance settlements. According to company representatives, this will strengthen synergy between platforms and accelerate the adoption of Ripple products in the prime brokerage space.
Regulatory Changes and Market Outlook
Amid favorable regulatory changes in the U.S., including Trump’s statements supporting cryptocurrencies, institutional investors are increasingly entering the digital asset market. Companies like Fidelity, BNY Mellon, and others are expanding their offerings, making prime brokers key intermediaries in the market.
About Hidden Road
Founded in 2018, Hidden Road serves hedge funds and large investment firms, specializing in cryptocurrency transactions and foreign exchange operations. In 2024, the company’s transaction volume exceeded $3 trillion. Previously, it received $50 million in investments from Castle Island Ventures, Coinbase, and Citadel Securities.
At the time of the deal, Hidden Road was exploring options for sale or capital raising, and Ripple’s acquisition is expected to strengthen the positions of both companies in the growing crypto market, according to the company.