Ripple, a prominent player in blockchain-based payment solutions, has recently announced its acquisition of Hidden Road, a prime brokerage firm specializing in both traditional and digital assets. The acquisition, valued at $1.25 billion, marks a significant milestone for Ripple and the broader cryptocurrency industry, positioning Ripple as the first crypto firm to own and operate a global, multi-asset prime broker.

Hidden Road, founded in 2018, offers a comprehensive suite of services, including clearing, prime brokerage, and financing across various asset classes, such as foreign exchange, digital assets, derivatives, swaps, and fixed income. With over 300 institutional clients and an annual clearing volume exceeding $3 trillion, Hidden Road has established itself as a key player in the financial services landscape.

According to Ripple CEO Brad Garlinghouse, the acquisition was prompted by Hidden Road's need for external capital to overcome balance sheet limitations that were constraining its growth. Garlinghouse emphasized the strategic importance of the deal, stating that it addresses the growing need for robust infrastructure to support the increasing integration of traditional finance and the crypto industry. He highlighted that as the crypto industry becomes more intertwined with traditional finance, top-tier infrastructure is essential to accommodate the financial institutions entering the space.

Ripple intends to leverage its RLUSD stablecoin, launched in December 2024, as collateral across Hidden Road's prime brokerage products. Garlinghouse underscored the critical role of collateral in prime brokerage services, as hedge funds and institutional investors typically require collateral for loans or complex trading positions, such as short selling.

The acquisition is subject to regulatory approvals, with Garlinghouse anticipating the deal to close no later than the third quarter of 2025. This timeline reflects the complexities involved in securing regulatory clearance for such a significant transaction in the evolving landscape of digital assets.

Ripple President Monica Long addressed the company's acquisition strategy during Paris Blockchain Week 2025, suggesting that Ripple is more inclined towards mergers and acquisitions (M&A) than pursuing an initial public offering (IPO). Long explained that an IPO is typically more suitable for companies seeking increased liquidity, which is not currently a constraint for Ripple's growth. Instead, the company is focusing on expanding its business organically and through strategic M&A activities.

Garlinghouse also emphasized the positive impact of the changing regulatory environment in the United States on Ripple's strategic decisions. He noted that the US market is becoming more accessible due to the shift in leadership at the Securities and Exchange Commission (SEC) and the more favorable stance towards digital assets. Garlinghouse has been critical of the SEC's previous approach under former leader Gary Gensler, who pursued aggressive legal actions against several crypto firms, including Ripple.

Marc Asch, founder and CEO of Hidden Road, expressed confidence that the acquisition will unlock significant growth opportunities for the company. With access to new resources, licenses, and added risk capital, Hidden Road aims to expand its capacity, broaden its product offerings, and serve more markets and asset classes.

The acquisition of Hidden Road by Ripple represents a pivotal moment for the cryptocurrency industry, signaling its increasing maturity and integration with traditional finance. It reflects a strategic move by Ripple to capitalize on the evolving regulatory landscape and strengthen its position as a leading player in the digital asset space. By combining Ripple's expertise in blockchain technology with Hidden Road's established prime brokerage services, the deal has the potential to transform the way institutional investors engage with digital assets and accelerate the adoption of cryptocurrency in the broader financial ecosystem.