Ripple, a prominent player in the cryptocurrency landscape, has recently acquired the prime brokerage Hidden Road for $1.25 billion, highlighting the integration of decentralization with traditional finance.
Crypto analyst Nic Puckrin, founder/CEO of The Coin Bureau, views this acquisition as a sign of a growing trend and believes it will positively impact Ripple’s blockchain utilization and XRP’s value.
This transaction, expected to finalize by the third quarter of this year, will primarily be cash-based, incorporating some payment in XRP tokens and Ripple stock.
Founded in 2018—a year marked by a significant downturn in cryptocurrency markets—Hidden Road managed $3 trillion in fund transfers in 2024.
Today, however, the outlook is different. “The perception of crypto has transformed,” Puckrin shared.
XRP currently boasts a market capitalization of around $126 billion, and Hidden Road aims to leverage blockchain technology for expedited settlements, an area where traditional finance has yet to fully adopt such advancements.
This acquisition also follows Hidden Road’s quest for funding after initial support from Castle Island Ventures, Coinbase Ventures, and Citadel Securities.
To gain insight, we asked Puckrin what he envisions for the newly formed entity and its implications for the digital asset sector in the future.
Is Ripple aiming to emerge as a comprehensive financial services player through Hidden Road?
Puckrin: I don’t believe Ripple seeks direct competition with established financial institutions like JPMorgan Chase; instead, its goals appear even grander. By acquiring Hidden Road, Ripple is gaining control over vital financial infrastructure—an essential component for liquidity and settlements, relied upon by banks. So, while it may not be a full-service financial institution in the traditional sense, it is certainly a crucial element for all others.
Using XRP in partial financing for the acquisition is unconventional. What precedent does this establish?
With the resurgence of M&A activities, we might witness numerous projects attempting a similar strategy. Ripple is positioning XRP as a strategic treasury asset, indicating a robust level of trust in this token. Smaller projects with less established cryptocurrencies may struggle more if they cannot cultivate such confidence in their futures.
What indicators will you monitor to assess whether post-trade activity transitioning to XRPL will increase demand?
Increased transaction fee revenue would suggest rising demand for the network. Additionally, the volume of bridging and settlement transactions between XRPL and major fiat stablecoins could serve as a strong signal of growing activity.
TradFi firms have recently been acquiring crypto companies. Why is it now time for crypto to take the initiative?
The new U.S. administration has fostered a much more favorable regulatory landscape for crypto, which has been long anticipated by the industry. There’s also a surge of crypto entities filing for IPOs in the United States. Although markets may be experiencing short-term declines, the sentiment toward crypto has shifted, overcoming a significant barrier to acceptance.
Does the increasing convergence of crypto and TradFi threaten the decentralization principles that crypto was built upon? Or is this hybrid future inevitable?
I believe the crypto ecosystem is increasingly dividing into two distinct paths—“A Tale of Two Cryptos.” The retail aspect remains largely speculative and influenced by fleeting trends, while the institutional side is seeing major players entering the space, acquiring Bitcoin, launching new offerings, and pursuing IPOs. There is room for decentralization in retail, but it becomes less pronounced as institutions engage. Nonetheless, this is essential for advancing crypto into mainstream acceptance.
Are we entering a stage where crypto-native firms must comply with the same regulatory and capital requirements as traditional banks?
Absolutely, and this is part of the natural evolution of crypto. Mainstream adoption will be unattainable if crypto-native firms do not adhere to established regulations. However, if they do comply, it opens up opportunities, as crypto is an innovative technology capable of substantially enhancing traditional financial systems—all within the existing regulatory frameworks.