Ripple, the blockchain-based payments firm, has announced its largest acquisition to date, agreeing to purchase prime brokerage firm Hidden Road for $1.25 billion. The deal marks one of the most significant transactions in the digital asset industry, surpassing Stripe’s $1.1 billion acquisition of stablecoin payments platform Bridge earlier this year.
Hidden Road, founded in 2018, is a major player in financial markets, offering clearing, prime brokerage, and financing services across foreign exchange, digital assets, derivatives, swaps, and fixed income. The firm currently clears over $3 trillion annually for more than 300 institutional clients, including hedge funds.
Brad Garlinghouse, Ripple’s CEO, said the acquisition aligns with the growing convergence of crypto and traditional finance. “This is a big deal for Ripple — but also a big deal for the industry,” Garlinghouse said. “As the entire crypto industry gets more into traditional finance, we need top-tier infrastructure to support financial institutions entering the space.”
Integrating Ripple’s RLUSD Stablecoin
Once the transaction is completed, Hidden Road plans to integrate Ripple’s RLUSD stablecoin as collateral across its prime brokerage products. Ripple launched RLUSD in December 2024, and the stablecoin is expected to play a pivotal role in the company’s operations.
Collateral is essential in the prime brokerage business, especially for hedge funds and institutional investors who require it to secure loans or engage in complex trading strategies, such as short selling. “Collateral is key,” Garlinghouse emphasized.
Strategic Timing and Regulatory Tailwinds
The acquisition comes at a favorable time for Ripple, which recently scored a major legal victory. Last month, the U.S. Securities and Exchange Commission (SEC) dropped a long-running lawsuit against Ripple that alleged the company had conducted an unregistered securities offering.
The regulatory environment has also shifted in favor of the crypto industry following Donald Trump’s re-election as U.S. president. Trump has been vocal about his support for blockchain technology and promised favorable policies for the sector.
Garlinghouse noted that a supportive regulatory environment played a role in Ripple’s decision to pursue the acquisition. “Deals like this make a lot more sense when you have a supportive regulatory environment — as opposed to the open warfare legal tactics we’ve seen in the past,” he said.
Closing and Future Impact
The Ripple-Hidden Road acquisition is expected to close by the third quarter of 2025, pending regulatory approvals. Once finalized, it will position Ripple as a key player in bridging the gap between crypto and traditional finance. The deal underscores the growing demand for robust infrastructure to support institutional investors as they increasingly adopt digital assets.
This acquisition not only reflects Ripple’s ambition to expand its influence but also signals a broader trend of consolidation and maturation within the crypto industry. As traditional finance and digital assets continue to converge, such deals are likely to set the tone for the future of the sector.
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