“`html

Hidden Road, a non-bank brokerage firm recently acquired by Ripple, has secured regulatory approval to operate as a broker-dealer. The firm received its broker-dealer license from the Financial Industry Regulatory Authority (FINRA), enabling it to expand its services for institutional investors.

Ripple’s Acquisition of Hidden Road

Ripple acquired Hidden Road in a $1.25 billion deal, marking one of the largest acquisitions in the cryptocurrency industry. As part of the integration, Hidden Road will utilize Ripple’s RLUSD stablecoin as collateral for its prime brokerage services. Additionally, the firm plans to transition its post-trade activities onto the XRP Ledger, Ripple’s blockchain platform.

Key Benefits of FINRA Approval

With the FINRA license, Hidden Road can now expand its prime brokerage, clearing, and financing services across fixed-income assets. Noel Kimmel, President of Hidden Road, emphasized that this approval allows the firm to engage with a broader range of institutional customers.

This license enables us to transact with a much broader universe of customers.

Hidden Road currently clears over $3 trillion annually across more than 300 institutions. Ripple aims to channel this substantial volume through the XRP Ledger, leveraging its blockchain technology to enhance efficiency and reduce costs.

Faster and Cost-Effective Clearing Services

By integrating Ripple’s RLUSD stablecoin and utilizing the XRP Ledger, Hidden Road is set to revolutionize its clearing services. These innovations will allow trades to settle faster, reducing the typical settlement time from 24 hours to just minutes.

Instead of waiting for 24 hours to settle trades through fiat rails, Hidden Road will be using the XRP Ledger for clearing a portion of trades and RLUSD as collateral across its prime brokerage services, including cross-asset trades.

The use of Ripple’s blockchain-based solutions positions Hidden Road as a competitive non-bank prime broker, offering lower-cost clearing services for both cryptocurrency and traditional financial instruments.

Ripple’s Vision for Traditional Markets

Ripple CEO Brad Garlinghouse highlighted the strategic importance of the acquisition, stating that the deal bridges the gap between cryptocurrency and traditional financial markets.

This deal marks a once-in-a-lifetime opportunity for crypto to access the largest and most trusted traditional markets, and vice versa.

Future Plans for Hidden Road

Looking ahead, Hidden Road plans to broaden its offerings by introducing fixed-income repurchase agreements and global funding services later this year. These initiatives will be supported by Ripple’s financial resources and balance sheet, further strengthening Hidden Road’s competitive edge in institutional finance.

The acquisition of Hidden Road represents a significant milestone for Ripple, enabling the company to leverage its blockchain technology to offer innovative solutions to the traditional financial sector.

“`

Post Views: 0