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Ripple, a leading cryptocurrency company, is acquiring Hidden Road in a $1.25 billion deal, marking one of the largest acquisitions in the crypto industry this year. This move follows a similar billion-dollar acquisition involving FTX and BlockFi.

Ripple’s Strategic Acquisition of Hidden Road

The acquisition of Hidden Road, a prime brokerage firm, is part of Ripple’s broader strategy to attract more institutional investors and expand its range of services. The deal will primarily involve cash payments, supplemented by a portion paid in XRP and Ripple stock. Hidden Road’s founder, Marc Asch, will continue to lead the brokerage under Ripple’s ownership.

“Ripple needs to make sure we have the infrastructure in place to appeal and expand to a larger segment of the biggest bulge bracket institutions,” said Ripple CEO Brad Garlinghouse.

Garlinghouse further stated that he expects the acquisition to be finalized by the third quarter of 2025 at the latest. Hidden Road’s growth challenges, particularly due to balance sheet constraints, were key factors that led to the deal.

Integration of Ripple’s Technology and Investments

As part of the acquisition, Hidden Road will incorporate Ripple’s stablecoin RLUSD into its offerings. There is also a possibility of leveraging the XRP blockchain to facilitate more efficient transaction settlements. Ripple plans to invest billions into Hidden Road to scale its operations and meet the surging demand for prime brokerage services within the cryptocurrency market.

About Hidden Road

Founded in 2018 by Marc Asch, Hidden Road has rapidly established itself as a significant player in the crypto prime brokerage sector, competing with firms like FalconX and Coinbase Prime. The firm reported an impressive $3 trillion in fund transfers in 2024. Previously, Hidden Road secured $50 million in a Series A funding round, with backing from major investors such as Castle Island Ventures, Coinbase Ventures, and Citadel Securities.

Ripple’s Focus on Institutional Growth

Ripple’s acquisition of Hidden Road underscores its commitment to strengthening institutional adoption of cryptocurrency. By enhancing its infrastructure and services, Ripple aims to position itself as a key player in bridging traditional finance with blockchain-based solutions.

This acquisition is expected to significantly impact the prime brokerage landscape and further Ripple’s goal of expanding its influence in the crypto market.

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