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Ripple’s aggressive expansion strategy following its prolonged legal battle with the US Securities and Exchange Commission (SEC) is being interpreted as a decisive bid to regain lost momentum. Pro-XRP attorney John E Deaton, a prominent figure within the XRP community, commented via X, stating, “I agree with Chamath [Palihapitiya]. I also believe Ripple’s $1.25 billion acquisition of Hidden Road as possibly the best example of the convergence of TradFi and DeFi in all of crypto.”
Ripple Rebounds After SEC Battle
Hidden Road, a prime brokerage firm processing over $3 trillion annually across more than 300 institutional clients, is now incorporating the XRP Ledger (XRPL) for post-trade settlement processes. This integration is expected to result in a radical compression of settlement times, reducing the traditional 24-hour window to a rapid 3–5 seconds. The recently launched RLUSD stablecoin will act as collateral in this system, effectively bridging digital assets with traditional financial (TradFi) infrastructures.
Deaton emphasized the significance of the move, explaining that the acquisition “integrates blockchain infrastructure into institutional trading, merging DeFi’s efficiency with TradFi’s scale and client base, positioning Ripple as a leading pioneer in institutional DeFi.”
The strategic importance of custody services also features heavily in the post-litigation roadmap. Deaton pointed out that Ripple’s expansion into custody solutions — particularly through the acquisitions of Metaco and Standard Custody — is a deliberate maneuver. “There is a very specific reason Ripple now offers ‘Ripple Custody,’” he noted. “By offering custody alongside payments and stablecoin solutions, Ripple becomes a one-stop shop for financial institutions integrating blockchain technology.”
The decision to prioritize custody is underpinned by market projections. According to Boston Consulting Group, the digital asset custody market is expected to exceed $16 trillion in assets by 2030. Deaton implied that this forecast may have motivated the rapid moves in the space.
According to Deaton, the firm’s broader vision appears to be oriented towards establishing the XRP Ledger as a foundational platform for tokenization services. The lawyer outlined that Ripple is positioning itself to offer tokenization-as-a-service, enabling banks to tokenize traditional assets such as stocks, bonds, and real estate. The RLUSD stablecoin is expected to serve a central role in facilitating these tokenized transactions on the XRPL.
“It’s pretty clear that Ripple aims to leverage its custody infrastructure for tokenization-as-a-service, enabling banks to tokenize traditional assets like stocks, bonds, or real estate on the XRPL with RLUSD playing a pivotal role in supporting these transactions, positioning the XRPL as a global hub for tokenized assets,” Deaton wrote.
Summing up the broader implications of Ripple’s recent activity, Deaton concluded, “Looks to me that Brad Garlinghouse is making up for lost time after being slowed down by the SEC lawsuit.”
At press time, XRP traded at $2.31.
Featured image created with DALL.E, chart from TradingView.com
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Jake Simmons has been a Bitcoin enthusiast since 2016. Ever since he heard about Bitcoin, he has been studying the topic every day and trying to share his knowledge with others. His goal is to contribute to Bitcoin’s financial revolution, which will replace the fiat money system. Besides BTC and crypto, Jake studied Business Informatics at a university. After graduation in 2017, he has been working in the blockchain and crypto sector. You can follow Jake on Twitter at @realJakeSimmons.
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