Key Takeaways:
Ripple has finalized a significant acquisition of a prime brokerage service provider.
This strategic move merges traditional financial practices with cutting-edge digital solutions.
The new models are designed to enhance integrated asset management.
A robust compliance framework forms the foundation of this innovative approach.
Ripple has announced an acquisition deal with prime brokerage firm Hidden Road for $1.25 billion, marking a significant step in its expansion into institutional finance and enhancing its role within the cross-market infrastructure.
In a recent statement, Ripple revealed its plans to acquire Hidden Road for $1.25 billion, establishing itself as the first cryptocurrency company to operate a global, multi-asset prime brokerage firm. This partnership is poised to bridge the digital asset landscape for institutional clients on a large scale, facilitating significant market access…
— Ripple (@Ripple) April 8, 2025
According to a press release provided to Cryptonews, Ripple described this transaction as one of the largest in the digital asset sector. It solidifies Ripple’s status as the first crypto firm to own and manage a global multi-asset prime broker.
Hidden Road specializes in offering institutional clients a range of services, including prime brokerage, clearing, and financing across various sectors such as foreign exchange, digital assets, derivatives, swaps, and fixed income.
This acquisition aligns with Ripple’s broader strategy to enhance connections between traditional finance (TradFi) and decentralized finance (DeFi).
Reportedly, Hidden Road manages over $3 trillion in clearing annually, catering to a network of more than 300 institutional clients.
Ripple’s investment is anticipated to bolster Hidden Road’s operational capabilities and expand its global footprint.
Ripple plans to allocate resources to further develop Hidden Road’s service offerings and enhance its prime brokerage capabilities.
“We are at a pivotal moment for the next phase of digital asset adoption. As regulatory clarity emerges in the U.S. and market infrastructure evolves, we are accelerating our efforts to redefine finance,” stated Brad Garlinghouse, CEO of Ripple.
Ripple’s Stablecoin RLUSD to Be Used as Collateral
As part of the integration, Ripple intends to incorporate its stablecoin RLUSD into Hidden Road’s collateral network.
RLUSD is set to become the first stablecoin utilized for cross-margining within both digital and traditional financial markets, potentially enhancing its acceptance as a USD-backed collateral option for institutional investors.
In addition, Hidden Road will transition its post-trade functions to the XRP Ledger (XRPL) to boost operational efficiency.
“With the infusion of new resources and risk capital, we will unlock substantial growth—enhancing our capacity, product range, and reach across diverse asset classes. Ripple’s infrastructure and compliance-focused strategy align seamlessly with our goals,” commented Marc Asch, Founder and CEO of Hidden Road.
Ripple Resolves SEC Dispute With $50M Settlement
In a related development, Ripple settled a long-standing dispute with the U.S. Securities and Exchange Commission (SEC) in March, agreeing to a $50 million penalty and withdrawing its cross-appeal in the ongoing lawsuit.
@Ripple resolves its case with the @SECGov, settling for a $50M penalty and lifting the injunction preventing Ripple from selling XRP to institutional clients. This marks a significant milestone in a protracted lawsuit.#SEC #Crypto #Ripplehttps://t.co/txqDDCnn0G
— Cryptonews.com (@cryptonews) March 25, 2025
In exchange, the SEC has requested the removal of an injunction barring Ripple from selling XRP to institutional investors.
The settlement reduced Ripple’s financial penalty from the original $125 million proposed by the SEC.
These recent events underscore the transformative role of blockchain technology in global financial systems, particularly in areas with limited access to traditional banking services.
The developments also highlight the importance of regulatory clarity in shaping the evolution of the cryptocurrency industry.
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