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- Ripple acquires Hidden Road for $1.25B, becoming the first crypto firm to own a global multi-asset prime broker.
- RLUSD stablecoin enables efficient cross-margining between digital and traditional finance markets.
- Acquisition boosts Ripple’s global growth, with Hidden Road leveraging Ripple’s resources to expand its product offerings.
Ripple, a leading digital asset infrastructure provider, has acquired Hidden Road for $1.25 billion. This marks one of the largest deals in the digital asset industry. With the acquisition, the platform becomes the first crypto company to own and operate a global multi-asset prime broker. Hidden Road is known for its fast growth, clearing, brokerage, and financing services.
Hidden Road focuses on its operations in the segments of FX, digital assets, derivatives, and other related financial services. The firm deals with more than $3 trillion and partners with over 300 institutions globally. The acquisition will enable Hidden Road to expand geographically and diversify its services. The partnership enhances the position of XRP as a bridge between Decentralized Finance (DeFi).
Ripple’s CEO, Brad Garlinghouse, described this as a turning point. Speaking on this, he opined that regulatory certainty within the United States has led to the firm heading out to other countries. This change will enable the platform to grow and push adoption of digital assets worldwide. Thus, the deal should contribute to Ripple’s development and strengthen its position in the market.
RLUSD Facilitates Cross-Margining
One of the major consequences of this deal is the intention of the platform to increase utilization of Ripple USD, or RLUSD, which is a stablecoin backed by the US dollar. Thus, Hidden Road will provide RLUSD as a surety to its prime brokerage services. This makes RLUSD the first USD-pegged stablecoin that has specifically been created to facilitate the cross-margin in digital currencies and other traditional financial markets.
Ripple ‘s technology in blockchain will also be useful in this acquisition. Thus, post-trade operations of Hidden Road will be transferred to Ripple’s XRPL blockchain. This change will help to enhance efficiency and lower the overall expenses required to support operations. Ripple’s centralized node network has been stable and suitable for institutional DeFi. It will offer an effective and affordable solution for managing liquidity and custody for Hidden Road clients.
Ripple Strengthens Global Position
Marc Asch, the CEO of Hidden Road, expressed his delight at the acquisition. He explained that Ripple’s resources and licenses will open up other growth opportunities. To achieve its current business goals and further develop its product portfolio, Hidden Road is going to use Ripple’s support. The partnership is underpinned by the strong and reliable values of institutional clients customary in traditional financial services.
This acquisition makes Ripple a leading company in the industry of digital asset. Ripple has now secured over 60 licenses around the globe to facilitate its operations, acquisitions, and growth. The takeover is expected to be done within the next few months if the regulatory bodies approve the deal.
