Ripple has become the first cryptocurrency company to acquire a prime broker, taking Hidden Road for $1.25bn.
Hidden Road provides services in clearing, prime brokerage, and financing across various markets, including foreign exchange (FX), digital assets, derivatives, swaps, and fixed income. With Ripple’s resources, it aims to expand operations and become the largest non-bank prime broker globally.
Brad Garlinghouse, CEO of Ripple, highlighted the importance of this acquisition, noting that the US market is now more accessible due to changes in regulatory conditions.
“The market is maturing to address the needs of traditional finance,” said Garlinghouse.
This acquisition is expected to enhance Ripple’s position in the digital asset space and facilitate the integration of digital assets with traditional finance. Hidden Road plans to migrate its post-trade activity to the XRP Ledger (XRPL), demonstrating XRPL’s potential for institutional decentralised finance (DeFi).
Ripple’s stablecoin, Ripple USD (RLUSD), will be used as collateral across Hidden Road’s prime brokerage products, enabling efficient cross-margining between digital assets and traditional markets.
This move represents a significant milestone for Ripple and the broader cryptocurrency industry, potentially increasing institutional adoption and integrating digital assets into mainstream financial systems.
