Ripple has announced its acquisition of prime brokerage firm Hidden Road in a **$1.25 billion deal**, reinforcing its commitment to expanding institutional services in the crypto sector. This marks Ripple’s second major acquisition this year, following FTX’s $1 billion purchase of BlockFi.
Strategic Acquisition to Boost Institutional Offerings
The acquisition aligns with Ripple’s strategy to attract institutional investors by broadening its service portfolio. The deal will be primarily cash-based, with additional payments in XRP and Ripple stock. Marc Asch, Hidden Road’s founder, will continue leading the brokerage under Ripple’s ownership.
Brad Garlinghouse, Ripple’s CEO, emphasized: “Ripple needs to ensure we have the infrastructure to appeal to larger bulge-bracket institutions.”
Garlinghouse anticipates the deal will close by Q3 2025, pending regulatory approvals.
Why Hidden Road?
Hidden Road faced scalability challenges due to balance sheet constraints, prompting its search for external capital. Ripple’s acquisition provides the resources needed to scale operations and meet rising demand for crypto prime brokerage services.
Integration Plans
- RLUSD Stablecoin: Hidden Road will integrate Ripple’s stablecoin, RLUSD, into its offerings.
- XRP Ledger: Potential use of the XRP blockchain for efficient transaction settlements.
- Investment: Ripple plans to inject billions into Hidden Road to expand its infrastructure.
Hidden Road’s Growth Trajectory
Founded in 2018 by Marc Asch, Hidden Road has emerged as a key player in crypto prime brokerage, competing with FalconX and Coinbase Prime. In 2024, the firm facilitated $3 trillion in fund transfers. Prior investors include:
| Investor | Contribution |
|------------------------|-----------------------|
| Castle Island Ventures | Series A Funding |
| Coinbase Ventures | Series A Funding |
| Citadel Securities | Series A Funding |
Hidden Road’s $50 million Series A round laid the groundwork for its rapid ascent.
FAQs
1. Why did Ripple acquire Hidden Road?
Ripple aims to enhance its institutional services by integrating Hidden Road’s prime brokerage expertise, addressing scalability challenges in the crypto market.
2. How will the acquisition be funded?
The $1.25 billion deal includes cash, XRP, and Ripple stock.
3. What changes will Hidden Road undergo?
Hidden Road will retain its leadership under Marc Asch while adopting Ripple’s stablecoin (RLUSD) and potentially leveraging the XRP Ledger.
4. When will the deal close?
Expected by Q3 2025, subject to regulatory approvals.
👉 Discover how Ripple’s acquisitions reshape crypto finance
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Keywords: Ripple, Hidden Road, XRP, institutional crypto services, prime brokerage, RLUSD, Brad Garlinghouse, crypto acquisitions
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