The blockchain-based payments firm Ripple is making headlines with its biggest acquisition yet — a $1.25 billion agreement to acquire Hidden Road, a global prime brokerage platform.
The strategic move underscores Ripple’s ambition to strengthen its infrastructure and expand institutional access to digital asset markets, as the line between traditional finance and crypto continues to blur.
A Major Move in Digital Finance
This deal ranks among the largest in the digital assets sector, surpassing Stripe’s recent $1.1 billion acquisition of stablecoin payment provider Bridge. Founded in 2018, Hidden Road offers prime brokerage, clearing, and financing services across various asset classes, including forex, digital assets, fixed income, and derivatives. The firm processes over $3 trillion in annual trading volume and serves over 300 institutional clients, ranging from hedge funds to large financial institutions.
Ripple’s CEO, Brad Garlinghouse, described the acquisition as a milestone for the company and a significant boost for the broader crypto ecosystem. He noted that Hidden Road had reached a ceiling due to balance sheet constraints, prompting the need for external backing to scale its operations further.
Integrating Ripple’s RLUSD Stablecoin
As part of the agreement, Hidden Road will integrate Ripple’s RLUSD — a U.S. dollar-pegged stablecoin introduced in December 2024 — as collateral within its prime brokerage services. Using RLUSD for collateral will streamline complex financial operations such as short selling, derivatives trading, and leveraged strategies.
“Collateral is foundational in institutional trading,” Garlinghouse explained. “This acquisition helps bring crypto-native tools into a framework that institutional clients understand and trust.”
Strengthening Ripple’s Position in Institutional Crypto
Ripple has long aimed to bridge the gap between traditional finance and blockchain-powered solutions. This acquisition reinforces that strategy, especially as more financial institutions show interest in accessing digital assets through regulated, secure, and well-capitalized platforms.
The deal is still subject to regulatory approval and is projected to close by the third quarter of 2025. Once finalized, Hidden Road will continue its operations under Ripple’s umbrella, leveraging Ripple’s infrastructure and capital to scale services globally.
Favorable Regulatory Winds
Ripple’s expansion comes amid a changing regulatory landscape favoring the crypto sector. Just weeks ago, Ripple celebrated a legal victory after the U.S. Securities and Exchange Commission (SEC) dropped its longstanding lawsuit accusing the firm of conducting an unregistered securities offering through its XRP token.
This shift, coupled with pro-crypto sentiment following Donald Trump’s re-election, has renewed optimism among industry players. Garlinghouse pointed out that the current climate makes strategic deals more feasible and impactful, especially compared to the restrictive and often adversarial stance previously taken by regulators.
“With more clarity and support from regulators, we’re now able to think bigger and invest in growth that benefits the whole ecosystem,” Garlinghouse said.
Ripple’s acquisition of Hidden Road marks a bold step toward institutionalizing crypto infrastructure. With over $1.25 billion backing the move and a clear roadmap to integrate stablecoin-based collateral solutions, the deal signals Ripple’s intent to lead the next wave of digital finance, where traditional investment strategies can seamlessly operate within the blockchain economy.
