Ripple acquires multi-asset brokerage 'Hidden Road' for $1.25 billion
Ripple announced its acquisition of multi-asset brokerage 'Hidden Road' for $1.25 billion, in one of the largest mergers and acquisitions deals in the cryptocurrency sector.
'Hidden Road' conducts annual transactions exceeding $3 trillion and serves over 300 institutional clients across diverse markets.
Brad Garlinghouse, the CEO of Ripple, clarified that the deal represents a turning point given the opening of the US market and the maturation of digital assets.
Ripple aims to inject new capital into 'Hidden Road' to expand brokerage and financing operations and enhance its position as the largest global non-bank financial intermediary.
Ripple is also seeking to integrate its stablecoin RLUSD into the brokerage services of 'Hidden Road', making it the first stablecoin to be used as collateral for margin trading between traditional and digital markets.
The company also plans to transfer post-trade operations to the XRP network to reduce costs and streamline settlement.
The deal is expected to be completed in the coming months after obtaining regulatory approvals, noting that Ripple holds more than 60 global regulatory licenses.
