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- Ripple secures $1.25B deal to acquire Hidden Road, aiming to expand into traditional finance markets.
- RLUSD stablecoin to power cross-margining between crypto and traditional asset trading for institutions.
- XRP Ledger to handle $3T+ yearly trading volume as Hidden Road shifts post-trade operations to blockchain.
Ripple has secured an agreement to purchase Hidden Road, which operates as a prime brokerage firm, for $1.25 billion. Regulatory clearance will determine if the deal can be finalized since it remains ongoing, but the companies predict completion will occur in the upcoming months.
Since its acquisition, Ripple has introduced itself as the largest crypto company to operate global prime brokerage services spanning several asset types. Hidden Road works with over 300 institutional clients who settle operations worth over $3 trillion annually.
The firm extends its operations through essential financial markets consisting of digital assets,ange trading, and derivative products—ripple plans to unite its blockchain technology solution with Hidden Road infrastructure to deliver expanded global institutional services.
The transaction supports Ripple’s strategic initiative that combines blockchain technologies with conventional financial market structures.
RLUSD Stablecoin Set to Link Traditional and Digital Market Systems
Following the acquisition, Ripple stated that RLUSD would be collateral for brokerage tasks. The company projects that RLUSD will enable efficient cross-margining capabilities that merge digital assets with traditional financial instruments.
Implementing RLUSD has the potential to modernize complex financial trading systems, enhancing market stability and better managing associated risks while improving liquidity. Ripple will add RLUSD functionality to Hidden Road infrastructure to optimize client collateral processing.
The XRP Ledger (XRPL) platform has become the target destination for Hidden Road’s relocation of its post-trade functions. The planned transition aims to decrease operational expenses while enhancing transaction speed and settlement scalability.
The successful processing of institutional-scale volumes on Ripple’s XRP Ledger will be vital for validating blockchain readiness because the XRPL integration serves as a major proof of concept for high-frequency institutional environments.
Marc Asch, who leads Hidden Road, declared that the deal would help their company embrace global markets and meet regulatory needs. Ripple’s backing gives Hidden Road the necessary framework and considerable size to expand its service capabilities.
A successful conclusion to this deal will represent Ripple’s key institutional finance achievement in the market. Ripple established its purpose to merge conventional finance systems with blockchain-based scalable infrastructure solutions.
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