TL;DR

Ripple acquired institutional broker Hidden Road for $1.25 billion, marking one of the largest deals in the crypto sector.
The purchase aims to integrate the RLUSD stablecoin as collateral in traditional markets and migrate operations to the XRP Ledger.
Hidden Road processes over $3 trillion annually and works with more than 300 institutions across currencies, digital assets, derivatives, and fixed income.

Ripple announced the acquisition of Hidden Road for $1.25 billion, in what represents one of the largest transactions ever recorded in the crypto industry.

With this agreement, the company will take control of a global institutional broker operating across multiple markets and asset classes, a move that aims to strengthen its infrastructure in response to growing demand from traditional clients.

Hidden Road processes over $3 trillion annually and maintains relationships with more than 300 institutions. Its platform offers brokerage, clearing, and financing services for a wide range of instruments, including currencies, digital assets, derivatives, and fixed income. Ripple was already a shareholder in Hidden Road and also a client of its services, which helped facilitate the decision to move forward with the acquisition.

Ripple Seeks to Promote RLUSD Adoption

One of Ripple’s main goals is to consolidate the use of its RLUSD stablecoin within the traditional financial ecosystem. Hidden Road already accepts this asset as collateral in its operations, which enables collateral integration across crypto and traditional markets without duplicating risk. With this step, RLUSD becomes the first stablecoin to enable this type of cross-margining efficiently.

The deal also includes the migration of Hidden Road’s post-trade activity to the XRP Ledger. This aims to optimize operational costs and prove that the blockchain can serve as the foundation for institutional financial products. In addition, Ripple plans to use this integration to improve the capacity of its payment network and offer custody solutions with banking standards for Hidden Road’s clients.

More Favorable Regulations for the Crypto Industry

According to the company, the regulatory environment in the United States is entering a more open phase after years of pressure on the industry. This allows the acceleration of projects that connect traditional financial infrastructure with blockchain-based solutions. The company holds more than 60 licenses in various jurisdictions, which simplifies the execution of such agreements on a global scale.

The transaction still requires regulatory approval, but it is expected to close in the coming months. Ripple anticipates that the addition of Hidden Road will enhance its offering for institutional clients and expand its reach into new markets and asset classes.

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Filed under: News - @ April 8, 2025 3:06 pm