^{Brad Garlinghouse (@bgarlinghouse) / X}

In one of the most significant moves in the crypto-finance sector to date, Ripple announced on Tuesday its agreement to acquire Hidden Road, a global prime brokerage platform, for a staggering $1.25 billion. This acquisition marks Ripple’s largest purchase ever, and one of the most impactful deals in the broader digital assets industry, surpassing notable transactions like Stripe’s $1.1 billion purchase of Bridge in February.

Who is Hidden Road? A Powerhouse in Prime Brokerage

Founded in 2018, Hidden Road has quickly risen to prominence as a key infrastructure provider for institutional investors. The firm offers clearing, financing, and prime brokerage services across several asset classes, including:

• Foreign exchange (FX)
• Digital assets
• Derivatives and swaps
• Fixed income instruments

Currently, Hidden Road clears over $3 trillion in transactions annually for more than 300 institutional clients, including hedge funds, trading firms, and large asset managers. The company is known for its multi-asset flexibility, global trading access, and advanced risk management framework.

Why Ripple? Why Now?

According to Ripple CEO Brad Garlinghouse, the deal was prompted by Hidden Road’s need for stronger capital backing. The firm, despite its growth, was hitting limitations due to balance sheet constraints, prompting it to seek outside investment or acquisition.

“This acquisition is monumental for Ripple — but more importantly, it’s a pivotal moment for the industry at large,” Garlinghouse shared in an exclusive with CNBC.
“As crypto and traditional finance continue to converge, we need serious infrastructure to support major institutions entering the space.”

Ripple’s acquisition of Hidden Road is part of its larger mission to bridge traditional financial services and blockchain-based solutions. The integration of Hidden Road’s infrastructure will provide Ripple with a deeper foothold in institutional finance, helping it deliver enterprise-grade access to crypto and multi-asset markets.

What Changes Post-Acquisition?

Once the deal is finalized — pending regulatory approval, which is expected by Q3 2025 — Ripple plans to implement significant strategic upgrades, including:

• Introducing RLUSD Stablecoin: Ripple’s RLUSD, a U.S. dollar-pegged stablecoin launched in December 2024, will be used as collateral across Hidden Road’s prime brokerage services.
• Strengthening Liquidity Access: Hedge funds and large trading desks will benefit from enhanced collateral management and capital efficiency powered by RLUSD.
• Improved Risk Management & Credit Facilities: With Ripple’s robust backing, Hidden Road will be better positioned to offer larger facilities to clients seeking leverage in complex trading strategies.

“Collateral is the lifeblood of prime brokerage,” said Garlinghouse. “Having a stable and trusted digital asset like RLUSD in the mix unlocks powerful new trading capabilities for our institutional partners.”

Regulatory Green Light & Market Timing

Ripple's aggressive expansion comes on the heels of a significant legal victory. Just last month, the U.S. Securities and Exchange Commission (SEC) dropped its long-standing lawsuit against Ripple, which had accused the company of conducting unregistered securities offerings via its XRP token.

This decision has given Ripple newfound momentum — both in investor confidence and strategic execution. Additionally, the recent re-election of U.S. President Donald Trump, who has signaled support for crypto innovation, is creating a more favorable regulatory atmosphere.

“Deals like this only make sense in a market where the regulatory landscape allows for growth,” Garlinghouse said. “We’re finally moving away from the era of hostile regulation and into one of innovation and partnership.”

Industry Impact: Another Signal of Crypto Maturity

Ripple’s $1.25 billion acquisition of Hidden Road isn't just about business expansion — it's a broader symbol of the crypto industry's maturity and integration into global finance. As centralized finance and decentralized assets increasingly overlap, demand for trusted intermediaries and institutional-grade tools is surging.

Hidden Road joins a growing list of crypto-focused platforms being folded into larger financial ecosystems, akin to:

• Coinbase’s acquisition of FairX for derivatives
• Galaxy Digital’s purchase of GK8
• Anchorage Digital’s institutional custody expansion

These moves suggest a clear narrative: crypto infrastructure is evolving, and firms like Ripple are positioning themselves at the center of that transformation.

Ripple’s Bold Vision is Just Getting Started

By acquiring a multi-asset powerhouse like Hidden Road, Ripple is not only expanding its service suite — it’s doubling down on its long-term vision to make crypto infrastructure indispensable for global finance.

This deal reflects a growing consensus: institutional-grade crypto is no longer a niche market — it’s the future of financial services.

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