- Ripple is set to purchase the prime brokerage firm Hidden Road for $1.25 billion to broaden its institutional services.
- Hidden Road will incorporate the RLUSD stablecoin as a collateral asset and utilize the XRPL Ledger for post-trade settlement.
- XRP experienced a 3% decline on Tuesday, with the ongoing global trade tensions overshadowing the positive news of the Hidden Road acquisition.
On Tuesday, Ripple revealed its plans to acquire prime brokerage firm Hidden Road, aiming to enhance its institutional offerings and promote the use of the RLUSD stablecoin along with the XRP Ledger (XRPL). Despite the optimistic announcement, XRP continued trading below $2, as the impact of the global trade war outshone any positive sentiments generated.
Ripple aims to enhance institutional capabilities with Hidden Road deal
Ripple confirmed its acquisition of hidden brokerage firm Hidden Road for $1.25 billion, focusing on expanding institutional offerings.
“For the crypto industry to enter its next growth phase, establishing robust infrastructure for institutional adoption is essential; prime brokers offer the credibility and professional trading services that digital assets require, akin to those in traditional finance,” Ripple remarked in a press statement.
Prime brokerage firms deliver services like leveraged trading execution, custody, and lending to entities such as hedge funds and market makers.
Founded in 2018, Hidden Road provides services to clients in both traditional and digital asset markets. In 2022, it successfully raised funds through a Series A financing round that attracted investors like Coinbase Ventures and Citadel Securities.
In 2024, Hidden Road reportedly facilitated transactions totaling $3 trillion among 300 institutional clients.
The acquisition will allow Hidden Road to adopt the RLUSD stablecoin as a collateral asset for its prime brokerage operations and implement the XRPL for post-trade settlement. Ripple indicated that the transaction is expected to close in the upcoming months, subject to regulatory approval.
This announcement follows shortly after Ripple and the Securities & Exchange Commission (SEC) reached an agreement to conclude their prolonged legal conflict that lasted over four years.
XRP is currently trading at approximately $1.86, reflecting a 3% decrease for the day.