Key Notes
- Payments giant Ripple Labs has bought a brokerage firm, Hidden Road.
- The digital currency payments firm announced the deal is valued at $1.25 billion, making it one of the largest in the market.
- The acquisition will integrate several of Ripple’s products, including RLUSD and the XRP Ledger.
Ripple Labs, the American tech company, is back in the spotlight following its $1.25 billion acquisition of prime brokerage firm Hidden Road, one of the biggest deals in the crypto ecosystem.
According to the update, Ripple Labs said the acquisition is not primarily about the $1.25 billion spent. Rather, the company sees it as a strategic opportunity to bridge the gap between traditional markets and digital finance.
Hidden Road works with over 300 top financial institutions and clears approximately $3 trillion annually. Ripple believes this deal will provide the leverage needed to become more effective within the broader financial system.
A Strategic Step into Traditional Finance
Projections suggest the acquisition will grant Ripple Labs access to Hidden Road’s extensive network, enabling more institutional players to integrate blockchain into their daily operations.
While sharing the news on X, Brad Garlinghouse, Ripple’s CEO, said the acquisition gives the firm a rare chance to enter some of the most established and trusted financial markets. He added that Hidden Road has proven itself as a reliable link between market makers, hedge funds, and traders across different sectors.
Today, @Ripple announced the acquisition of Hidden Road for $1.25B, one of the largest deals ever in the crypto space. But the price tag isn’t what’s most important – it’s that this deal marks a once-in-a-lifetime opportunity for crypto to access the largest and most trusted…
— Brad Garlinghouse (@bgarlinghouse) April 8, 2025
Ripple, a customer of Hidden Road for years, understands the broker’s strong internal systems, risk management, and experience handling large volumes of trade.
The plan is to use the XRP Ledger (XRPL) to speed up the settlement process. Instead of waiting for trades to settle through traditional bank systems, some trades will now clear on XRPL. This means faster and cheaper transactions.
Hidden Road will also use Ripple’s RLUSD stablecoin as collateral in trading, including crypto and traditional assets.
It is important to add that this acquisition is another groundbreaking news for Ripple Labs’ investors and XRP supporters. This is because the company no longer has a legal dispute with the US Securities and Exchange Commission (SEC). Brad Garlinghouse confirmed last month that they are in the final phase of resolving the case.
Ripple Expands Role in Institutional DeFi
This deal with Hidden Road supports Ripple Labs’ long-term goal to become the top platform for institutional decentralized finance (DeFi).
For context, Ripple is expanding its cross-border payment services. It recently obtained a license from the Dubai Financial Services Authority (DFSA), allowing it to offer regulated XRP payments in the UAE. The company views this acquisition as improving liquidity and lowering client costs.
Still, with over 60 regulatory licenses and registrations across several countries, Ripple is well-positioned to offer digital asset custody and tokenization services. Hidden Road’s clients, many of whom are used to the standards of traditional finance, can now access Ripple’s digital tools without having to compromise on trust or security.
Marc Asch, Founder and CEO of Hidden Road, said the deal would allow the brokerage to increase its service capacity, offer new products, and reach more markets. He believes that under Ripple’s umbrella, it can maintain the same level of trust clients expect while offering a more modern, digital approach.
The acquisition is expected to close in the coming months, pending regulatory approval.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
