Ripple is making waves with its $1.25 billion acquisition of crypto-friendly prime brokerage Hidden Road, marking one of the largest deals in the digital asset industry. This strategic move positions Ripple as the first crypto company to operate a global, multi-asset prime broker, offering services across foreign exchange (FX), digital assets, derivatives, swaps, and fixed income.

What Makes Hidden Road a Strategic Win?

Hidden Road’s reputation as a trusted prime broker is built on clearing $3 trillion annually across markets, serving over 300 top institutional clients. Ripple, which was both a Series B investor and a client, sees the acquisition as an opportunity to scale Hidden Road’s services immediately.

Ripple plans to inject billions into the business, amplifying its capacity to serve customers while expanding into new markets and asset classes. According to Ripple CEO Brad Garlinghouse, the deal leverages the company’s position and strengths to accelerate digital asset adoption and reshape the financial landscape.

Integrating Ripple’s Ecosystem with Hidden Road

The acquisition aligns Hidden Road’s operations with Ripple’s blockchain-based ecosystem. Key integrations include:

• Migrating post-trade activity to Ripple’s XRPL blockchain.
• Incorporating Ripple payments for liquidity management.
• Expanding digital asset custody services for Hidden Road’s institutional clients.

Additionally, Ripple’s USD-backed stablecoin RLUSD will play a pivotal role in Hidden Road’s operations, becoming the first stablecoin to enable cross-margining between digital and traditional markets.

Ripple’s Vision for Digital Asset Adoption

Ripple sees this acquisition as part of a larger movement towards institutional adoption of digital assets. With regulatory clarity emerging in the U.S. market, Garlinghouse predicts a transformative phase for the crypto industry, driven by mature products and services tailored to traditional finance needs.

Hidden Road’s CEO, Marc Asch, shares this vision, emphasising the potential for growth unlocked by Ripple’s resources. Together, they aim to bring the reliability of traditional finance to the digital world, serving a broader range of markets with enhanced capacity and innovative products.

The Ripple Effect on XRP and Market Projections

Ripple’s expanding influence bolsters the prospects of its native token, XRP, and its ecosystem. Standard Chartered forecasts XRP could reach $12.50 by 2028, significantly up from its current price of $1.94.

By owning Hidden Road, Ripple cements its role as a key player in bridging the gap between traditional finance and digital assets, setting the stage for its next growth chapter.