Ripple, a provider of digital asset infrastructure for financial institutions, today announced it is acquiring Hidden Road for $1.25 billion.
Hidden Road is a prime broker offering institutions a one-stop-shop of advanced services including clearing, prime brokerage, and financing across FX, digital assets, derivatives, swaps, and fixed income.
“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,” said Brad Garlinghouse, CEO of Ripple. “With these tailwinds, we are continuing to pursue opportunities to massively transform the space, leveraging our position and the strengths of XRP to accelerate our business and enhance our current solutions and technology.”
This acquisition also reinforces Ripple USD’s (RLUSD) position as an enterprise-grade USD-backed stablecoin with real utility as Hidden Road leverages it as collateral across its prime brokerage products. This will make RLUSD the first stablecoin to enable efficient cross-margining between the digital asset space and traditional markets.
Hidden Road will, in turn, migrate its post-trade activity across XRPL to streamline operations and lower costs, demonstrating XRPL’s potential as the go-to blockchain for institutional decentralized finance (DeFi). Ripple also sees the potential to optimize costs and liquidity in its cross-border payments solution, Ripple Payments, and provide critical custody services to Hidden Road’s customers who need bank-grade digital asset custody.
“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,” said Marc Asch, Founder and CEO of Hidden Road. ”Together with Ripple, we’re bringing the same level of trust and reliability that institutional clients are accustomed to in traditional markets — designed and optimized for a digital world.”
Ripple participated in Hidden Road’s Series B and is a customer of its platform, experiencing firsthand the strength of the team, technology, risk management, and operational controls. The deal is expected to close in the coming months, subject to regulatory approvals.
