Blockchain-based funds community Ripple introduced it has acquired crypto-friendly prime broker Hidden Road in one of many largest mergers within the cryptocurrency business to this point.
Ripple is buying Hidden Road in a $1.25 billion deal, the corporate formally announced on April 8.
The deal will make Ripple the primary crypto agency to personal and function a world, multi-asset prime broker. In accordance with the corporate’s April 8 announcement, the acquisition is anticipated to place Ripple because the world’s largest non-bank prime broker, with Hidden Road presently clearing greater than $3 trillion throughout greater than 300 establishments.
The acquisition additionally goals to bolster the place of Ripple USD (RLUSD), an institution-focused stablecoin launched by Ripple in December 2024.
Ripple has been a Hidden Road buyer for years
Ripple has been a buyer of Hidden Road for years and “is aware of their breadth of experience firsthand,” Ripple CEO Brad Garlinghouse mentioned in an X put up on April 8.
He additionally talked about that Hidden Road’s $3 trillion in annual clearing will faucet into Ripple-backed XRP (XRP) and its underlying decentralized, public blockchain, the XRP Ledger (XRPL).
Supply: Brad Garlinghouse
“As an alternative of ready for as much as 24 hours to settle trades by fiat rails, Hidden Road can be utilizing XRPL for clearing a portion of trades, and most consequentially, utilizing RLUSD as collateral throughout its prime brokerage companies,” Garlinghouse wrote on X.
Associated: US to get its first XRP-based ETF, launching on NYSE Arca
“The worth tag isn’t what’s most necessary — it’s that this deal marks a once-in-a-lifetime alternative for crypto to entry the most important and most trusted conventional markets, and vice versa,” the CEO added.
Ripple extra desirous about M&A than IPO
Ripple president Monica Lengthy addressed the corporate’s Hidden Road acquisition throughout a fireplace chat at Paris Blockchain Week 2025, offering insights on whether or not Ripple is planning an initial public offering (IPO) within the close to future.
Whereas some sources beforehand hinted at Ripple heading for an IPO after settling its lawsuit with the US Securities and Change Fee, Lengthy mentioned the corporate could be extra desirous about pursuing mergers and acquisitions (M&A) as an alternative.
Ripple president Monica Lengthy throughout a fireplace chat with Arjun Kharpal at Paris Blockchain Week on April 8. Supply: Cointelegraph
“We’re we’re undoubtedly a participant in M&A proper now,” Lengthy mentioned, including:
“I believe an IPO makes extra sense for an organization the place you’re wanting for extra liquidity, and that’s not our constraint to development proper now. We’re extra targeted on rising the enterprise as a non-public firm and M&As organically.”
The essential position of SEC management modifications
Garlinghouse mentioned the transfer comes at a pivotal time within the US digital belongings business and makes an important contribution to the market amid a regulatory shift within the US.
“We’re at an inflection level for the following section of digital asset adoption — the US market is successfully open for the primary time as a result of regulatory overhang of the previous SEC coming to an finish, and the market is maturing to deal with the wants of conventional finance,” Garlinghouse mentioned, including:
“With these tailwinds, we’re persevering with to pursue alternatives to massively remodel the house, leveraging our distinctive place and strengths of XRP to speed up our enterprise and improve our present options and expertise.”
Hidden Road founder and CEO Marc Asch expressed confidence within the anticipated development of the corporate with the acquisition.
“With new sources, licenses, and added threat capital, this deal will unlock vital development in Hidden Road’s enterprise, permitting us to extend capability to our buyer base, develop into new merchandise, and repair extra markets and asset courses,” Asch said.
Further reporting by Ailsa Sherrington.
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