Ripple, a renowned payment infrastructure provider has acquired Hidden Road, a prime broker for $1.25 billion. Ripple confirmed the acquisition in a press release on Tuesday, describing it as one of the largest deals in the digital assets industry. In addition, this deal also positions Ripple as the first crypto company to ever own and operate a global, multi-asset prime broker.
It is worth noting that the newly acquired company, Hidden Road is one of the fastest-growing prime brokers across the globe. It also has a strong market presence with over 300 top institutional customers, clearing $3T annually across markets. Hidden Road also provides institutions with one-stop shop of advanced services which includes clearing, prime brokerage, financing across foreign exchange (FX), digital assets, derivatives, swaps, and fixed income.
Ripple shares more insight on the $1.25B deal
In the press release, Ripple revealed that for the crypto industry to achieve the next phase of growth, core infrastructure must be in place for institutional adoption. The crypto firm further highlights the importance of prime brokers, stating that they bring the necessary credibility and professional trading services expected in legacy finance to digital assets. Ripple also revealed it plan to work with Hidden Road to bring digital assets to institutional customers at scale, thus bridging the gap between traditional finance and decentralized finance.
Ripple, in the press release, added that the acquisition also solidified its stablcoin (RLUSD) position as an enterprise-grade USD-backed stablecoin with real utility. Hidden Road will also leverage RLUSD as collateral across its prime brokerage products, making it the first stablecoin to facilitate efficient cross-margining between the digital asset space and traditional markets.
The CEO of Ripple, Brad Garlinghouse has reacted to the acquisition. He noted that the crypto service provider is at the inflection point for the next phase of digital asset adoption. This, according to him, results from the opening of the US markets, and the overhang of the former SEC administration coming to an end.
Meanwhile, the founder and CEO of Hidden Road, Marc Asch while reacting to the acquisition, revealed that the deal would unlock significant growth in Hidden Road’s business.
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