Cryptocurrency infrastructure company Ripple is acquiring prime broker Hidden Road for US$1.25 billion, one of the largest purchases ever in the cryptocurrency industry.
Ripple will be the first cryptocurrency firm to operate a multi-asset prime broker, the company said. Ripple’s RLUSD stablecoin, which is pegged to the U.S. dollar, will be used as collateral for Hidden Road’s brokerage products.
“We are at an inflection point for the next phase of digital asset adoption — the US market is effectively open for the first time due to the regulatory overhang of the former SEC coming to an end, and the market is maturing to address the needs of traditional finance,” said Ripple CEO Brad Garlinghouse.
“With these tailwinds, we are continuing to pursue opportunities to massively transform the space, leveraging our position and the strengths of [Ripple token] XRP to accelerate our business and enhance our current solutions and technology.”
The deal is expected to close in 2025’s third quarter. Ripple’s XRPL ledger will be used for Hidden Road’s post-trade settlements.
XRP, Ripple’s flagship token, is expected to reach US$5.50 in value by the end of 2025, according to Standard Chartered.
Standard Chartered also predicted that stablecoin transactions could increase by ten times over the next four years.
The RLUSD coin was launched in December. While it is currently the 12th-largest stablecoin by market capitalisation, Garlinghouse has projected that it will be among the top five by the end of the year.
The acquisition comes shortly after the U.S. Securities and Exchange Commission dropped its lawsuit against Ripple, which had alleged Ripple raised US$1.3 billion through XRP without registering the token as a security.
Ripple was valued at US$11.3 billion in 2024. Garlinghouse said last month that the company was considering an initial public offering, though “it isn’t a huge priority”.
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