- Ripple will acquire prime brokerage firm Hidden Road for $1.25 billion to expand its institutional offerings.
- Hidden Road will integrate the RLUSD stablecoin as a collateral asset and employ the XRPL Ledger for post-trade settlement.
- XRP saw a 3% downtick on Tuesday, with the ongoing global trade war outweighing positive sentiments from the Hidden Road acquisition.
Ripple announced on Tuesday that it is acquiring prime brokerage firm Hidden Road to enhance its institutional offerings and increase the adoption of the RLUSD stablecoin and the XRP Ledger (XRPL). Despite the positives from the announcement, XRP continued to trade below $2, as the effects of the global trade war outweighed any optimistic sentiments.
Ripple to expand institutional offering with Hidden Road acquisition
Ripple confirmed that it will acquire prime brokerage firm Hidden Road for $1.25 billion in an attempt to expand its institutional offerings.
“For the crypto industry to achieve the next phase of growth, it’s critical that core infrastructure is in place for institutional adoption; prime brokers bring the necessary credibility and professional trading services expected in legacy finance to digital assets,” Ripple stated in a press release.
Prime brokerage firms provide services including leveraged trading execution, custody, lending and borrowing to companies like hedge funds and market makers.
Hidden Road launched in 2018 and offers services to companies in the traditional and digital asset sectors. In 2022, the company completed a Series A financing round with investors including Coinbase Ventures and Citadel Securities.
Hidden Road reportedly cleared transactions worth $3 trillion across 300 institutional customers in 2024.
The acquisition will enable Hidden Road to integrate RLUSD as a collateral asset across its prime brokerage services and use XRPL for post-trade settlement. Ripple stated the deal will be completed in the coming months, pending regulatory approval.
The acquisition comes a few weeks after Ripple and the Securities & Exchange Commission (SEC) reached an agreement to end their more than four-year legal battle.
XRP trades around $1.86 at press time, down 3% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Leave feedback about this