Ripple acquires Hidden Road in USD 1.25 billion deal

The acquisition, once finalised, will make Ripple the first cryptocurrency-focused company to operate a global, multi-asset prime brokerage service. In essence, the move, which is subject to regulatory approval, marks one of the largest deals to date within the digital assets industry.

Expansion into prime brokerage and institutional services 

According to Ripple, Hidden Road currently processes approximately USD 3 trillion in annual volume across multiple asset classes, including foreign exchange, digital assets, fixed income, derivatives, and swaps. Its client base includes over 300 institutional entities. The company offers a consolidated service for institutions seeking execution, financing, and clearing solutions across both traditional and digital markets. 

With the support of Ripple’s financial resources, the prime broker is expected to scale operations significantly and expand its product and market reach. Ripple officials indicated that the company will leverage Hidden Road’s existing infrastructure to expand its services, particularly in areas related to custody, liquidity, and cross-border payments. 

The acquisition also supports Ripple’s stablecoin initiative. Hidden Road will use Ripple’s USD-backed stablecoin (RLUSD) as collateral within its prime brokerage framework. According to Ripple, this development could enable more efficient cross-margining between traditional markets and digital assets, positioning RLUSD as a functional tool in institutional finance. 

Ripple representatives noted that Hidden Road will migrate post-trade activities to the XRP Ledger (XRPL), citing cost-efficiency and operational streamlining. This shift is expected to demonstrate XRPL’s application in institutional decentralised finance (DeFi) environments. 

Ripple and Hidden Road had previously engaged through a strategic investment round and a customer relationship, which, according to Ripple, provided insight into Hidden Road’s operational controls, technology stack, and risk protocols. 

A representative from Ripple described the US regulatory environment as becoming more favourable for digital assets, suggesting that the acquisition aligns with a broader strategy to support the sector’s maturation and integration with traditional financial systems. Similarly, Hidden Road officials stated that the deal would allow the firm to expand capacity, diversify its offerings, and enter new markets with added regulatory support and capital.