Ripple has announced a $1.25 billion deal to purchase the multi-asset prime brokerage firm, Hidden Road, marking a significant event in the digital asset space.
Key Insights:
- Ripple’s acquisition aims to strengthen its market position and enhance its stablecoin initiatives.
- Hidden Road clears over $3 trillion in transactions annually across various markets, serving over 300 institutional clients.
In a recent development, it was revealed that Hidden Road was already in talks for a takeover. This deal is among the largest mergers and acquisitions in the digital asset industry.
Ripple’s CEO, Brad Garlinghouse, stated, “With the U.S. market finally opening up and digital assets maturing for institutional adoption, this is an inflection point.”
(Translation: With the U.S. market finally opening up and digital assets maturing for institutional adoption, this is a turning point.)
Ripple’s plans involve injecting fresh capital into Hidden Road to support its operations comprehensively, ultimately aiming to become the largest non-bank prime broker worldwide. The firm also intends to utilize Ripple’s U.S. dollar-backed stablecoin, RLUSD, as collateral for transactions across its platform.
As part of its expansion strategy, Hidden Road will shift its post-trade operations to the XRP Ledger, further driving down operational costs and improving settlement efficiency. Ripple expects this acquisition to finalize in the coming months, subject to regulatory clearance.
For further details, refer to the original press release on CoinDesk.
Disclaimer: Portions of this article may have been generated with the assistance of AI technology but were reviewed for accuracy.
