Crypto startup Ripple has agreed to acquire Hidden Road, a leading prime brokerage firm, for $1.25 billion.
This acquisition marks Ripple’s largest deal to date and one of the most significant transactions in the cryptocurrency space, surpassing Stripe’s $1.1 billion purchase of stablecoin payments platform Bridge.
Ripple CEO Brad Garlinghouse revealed that the acquisition was driven by Hidden Road’s need for external capital to overcome balance sheet constraints and sustain its growth trajectory.
“This is a big deal for Ripple — but also a big deal for the industry,” Garlinghouse stated in an interview with CNBC.
He emphasized the importance of robust infrastructure to support financial institutions as the crypto industry increasingly integrates with traditional finance.
Closing the deal
The deal, expected to close by the third quarter of 2025, will enable Hidden Road to leverage Ripple’s RLUSD stablecoin—launched in December—as collateral across its prime brokerage products.
- Garlinghouse highlighted the critical role of collateral in the prime brokerage sector, noting that institutional investors and hedge funds rely on it for loans and complex trading strategies such as short selling.
- Ripple’s acquisition comes on the heels of a major legal victory. Last month, the U.S. Securities and Exchange Commission (SEC) dropped its long-standing case against Ripple, which had accused the company of conducting an illegal securities offering.
This resolution has bolstered Ripple’s position in the market, paving the way for strategic moves like the Hidden Road acquisition.
Navigating the regulatory environment
The broader crypto industry has also benefited from a favorable regulatory environment following the re-election of Donald Trump as U.S. president.
Trump’s pro-crypto stance and promises of supportive policies have injected optimism into the sector.
When asked about the impact of this regulatory shift, Garlinghouse remarked, “Deals like this make a lot more sense when you have a supportive regulatory environment — as opposed to the open warfare legal tactics.”
What you should know
Founded in 2018, Hidden Road has established itself as a key player in the financial services industry, offering clearing, prime brokerage, and financing solutions across foreign exchange, digital assets, derivatives, swaps, and fixed income.
- The firm clears over $3 trillion annually across global markets and serves more than 300 institutional clients, including hedge funds.
- Ripple’s acquisition of Hidden Road speaks to its commitment to expanding its footprint in traditional finance while strengthening its position as a leader in the digital asset space.
The deal remains subject to regulatory approvals, but its completion is expected to set a new benchmark for innovation and collaboration in the crypto industry.
