Ripple acquires crypto-friendly prime broker Hidden Road for $1.25B

Blockchain-based payments network Ripple announced it has acquired crypto-friendly prime broker Hidden Road in one of the largest mergers in the cryptocurrency industry to date.

Ripple is acquiring Hidden Road in a $1.25 billion deal, the company officially announced on April 8.

The deal will make Ripple the first crypto firm to own and operate a global, multi-asset prime broker. According to the company’s April 8 announcement, the acquisition is expected to position Ripple as the world’s largest non-bank prime broker, with Hidden Road currently clearing more than $3 trillion across more than 300 institutions.

The acquisition also aims to reinforce the position of Ripple USD (RLUSD), an institution-focused stablecoin launched by Ripple in December 2024.

Ripple has been a Hidden Road customer for years

Ripple has been a customer of Hidden Road for years and “knows their breadth of expertise firsthand,” Ripple CEO Brad Garlinghouse said in an X post on April 8.

He also mentioned that Hidden Road’s $3 trillion in annual clearing will tap into Ripple-backed XRP (XRP) and its underlying decentralized, public blockchain, the XRP Ledger (XRPL).

“Instead of waiting for up to 24 hours to settle trades through fiat rails, Hidden Road will be using XRPL for clearing a portion of trades, and most consequentially, using RLUSD as collateral across its prime brokerage services,” Garlinghouse wrote on X.

“The price tag isn’t what’s most important — it’s that this deal marks a once-in-a-lifetime opportunity for crypto to access the largest and most trusted traditional markets, and vice versa,” the CEO added.

The crucial role of SEC leadership changes

Garlinghouse said the move comes at a pivotal time in the US digital assets industry and makes a crucial contribution to the market amid a regulatory shift in the US.

“We are at an inflection point for the next phase of digital asset adoption — the US market is effectively open for the first time due to the regulatory overhang of the former SEC coming to an end, and the market is maturing to address the needs of traditional finance,” Garlinghouse said, adding:

“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.”

Hidden Road founder and CEO Marc Asch expressed confidence in the anticipated growth of the company with the acquisition.

“With new resources, licenses, and added risk capital, this deal will unlock significant growth in Hidden Road’s business, allowing us to increase capacity to our customer base, expand into new products, and service more markets and asset classes,” Asch stated.

This is a developing story, and further information will be added as it becomes available.

Magazine: XRP win leaves Ripple and industry with no crypto legal precedent set