On Tuesday, Ripple, the blockchain-based payments network, announced its decision to acquire the crypto-friendly prime broker, Hidden Road.
The deal, valued at $1.25 billion, reflects Ripple’s goal to draw in big financial institutions by integrating a wider range of services.
Strategic expansion in a maturing market
According to the announcement, the acquisition agreement involves a combination of mostly cash, an allocation of XRP tokens, and stock. Ripple’s CEO, Brad Garlinghouse, emphasised the rationale behind the acquisition, stating to Fortune, “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.”
Read also: Kenya moves to regulate cryptocurrency with new virtual assets bill
The acquisition of Hidden Road is anticipated to close in the coming months, pending the necessary regulatory approvals. As part of the agreement, Ripple has agreed to inject billions of dollars of capital to provide immediate scale and satisfy the demand for Hidden Road’s prime brokerage.
Garlinghouse further noted the opportune timing of the acquisition, stating the shifting regulatory environment in the U.S. He stated, “We are at an inflection point for the next phase of digital asset adoption — the US market is effectively open for the first time due to the regulatory overhang of the former SEC coming to an end, and the market is maturing to address the needs of traditional finance.”
However, Hidden Road’s primary offerings encompass cryptocurrencies and foreign exchange, placing it in a competitive space alongside platforms like Coinbase Prime and FalconX. The company reportedly facilitated the transfer of $3 trillion worth of funds in 2024 and completed a $50 million Series A funding round in 2022 with backing from notable investors such as Castle Island Ventures, Coinbase Ventures, and Citadel Securities.
Leveraging synergies and future plans
Meanwhile, Ripple’s president, Monica Long, speaking earlier at the Paris Blockchain Week 2025, indicated that the company’s current focus leans towards mergers and acquisitions rather than an immediate initial public offering (IPO).
Read also: Ripple launches blockchain-based drought relief program in Kenya
She explained, “I think an IPO makes more sense for a company where you’re looking for more liquidity, and that’s not our constraint to growth right now. We are more focused on growing the business as a private company and M&As organically.”
Lastly, Hidden Road’s founder and CEO, Marc Asch, expressed optimism about the company’s future growth under Ripple’s ownership.
He stated, “With new resources, licenses, and added risk capital, this deal will unlock significant growth in Hidden Road’s business, allowing us to increase capacity to our customer base, expand into new products, and service more markets and asset classes.”