Ripple has acquired Hidden Road Partners for $1.25 billion. Hidden Road is a prime brokerage that enables FX, digital assets, derivatives, synthetics, and more. Ripple is a digital asset platform probably best known for the issuance of XRP, a crypto for value transfer. This, as well as its battle with the Securities and Exchange Commission, from which it emerged victorious.
RippleNet is Ripple’s flagship product, which seamlessly connects banks and payment providers for cross-border transfers.
payment providers to facilitate rapid and secure cross-border transactions
In a public statement, Ripple noted the acquisition was one of the largest in the digital asset sector and the combination will make Ripple the first crypto firm to operate a multi asset prime brokerage.
Ripple explained that for the digital asset sector to scale it is critical to for institutional adoption and prime brokers bring the necessary professional trading services which is currently expected in traditional markets.
Hidden Road is reportedly clearing $3 trillion annually, working with hundreds of top institutional customers. Some of its partners are firms like Coinbase, Talos and CME Group.
Brad Garlinghouse, CEO of Ripple, said they are at an inflection point in the next phase of digital asset adoption, and the US is finally open for the first time following the transition in government to a more crypto-friendly administration.
“With these tailwinds, we are continuing to pursue opportunities to massively transform the space, leveraging our unique position and strengths of XRP to accelerate our business and enhance our current solutions and technology.”
Ripple also offers a dollar-based stablecoin, RLUSD. Stablecoins are poised to become the next iteration of payments and transfers. Congress is currently working on legislation that will provide regulatory clarity for the stablecoin sector, enabling it to develop fully.
Marc Asch, Founder and CEO of Hidden Road, said the idea will unlock “significant growth in their business as they expand into new products and services.”
“Together with Ripple, we’re bringing the same level of trust and reliability that institutional clients are accustomed to in traditional markets — designed and optimized for a digital world.”
The Ripple-Hidden Road deal was enabled by FT Partners, the most prominent investment bank in the crypto sector.
