Ripple takes over the globally operating stockbroker Hidden Road for $ 1.25 billion
- Ripple becomes the first crypto company to buy a “own” worldwide broker through a billion dollar deal.
- The RLUSD is intended to enable cross-margining between crypto and traditional markets for the first time.
As CNF reported, Ripple has announced the takeover of Hidden Road, a global multi-asset Prime Broker, for $ 1.25 billion. The deal is one of the largest in the digital assets sector and positions Ripple as the first cryptocurrency company that has and operates a global prime broker.
The transaction will accelerate the institutional introduction of digital assets through the connection of conventional financial infrastructures with decentralized market systems. This strategic step represents the movement towards regulated services on an industrial level within the developing cryptocurrency ecosystem of today.
Strategic expansion combines traditional and digital finance
Hidden Road makes it easier to handle transactions worth over $ 3 trillion per year via various investment instruments. The company looks after around 300 institutional customers through clearing functions, financial management and prime brokerage skills in the areas of foreign exchange and digital assets, derivatives and fixed-interest markets. Ripple integrates these services into its platform to improve its institutional financial infrastructure.
Ripple-CEO Brad Garlinghouse, explainedthat the US market is now open to digital assets after the problems of regulation have been solved. He emphasized that Ripple would use the takeover to scale the operation and meet the market requirements. “”With this tailwind we continue to pursue opportunities to massively change the room“Said Garlinghouse and referred to the role of XRP when accelerating business growth.
Hidden Road’s business operations will be highly dependent on Riples StableCoin for companies called RLUSD. The stablecoin acts as security in brokerage products that enable products with digital assets to overlap with traditional financial markets. As already mentioned, RLUSD will become the largest stable coin that offers such cross-margining functions.
Hidden Road has planned the move of his post-trade infrastructure to take over XRP Ledger as an operative platform. The company wants to improve operational efficiency through this migration and at the same time reduce costs and demonstrate blockchain skills for institutional decentralized finance. Ripple integrates the institutional customer base of Hidden Road into an institutional storage service for digital assets within the framework of its custody system.
Improvement of institutional skills
Marc Asch, founder and CEO of Hidden Road, confirmed that the takeover will release significant growth. With more resources and risk capital, the company intends to expand into new asset classes and to operate more markets:
„Together with Ripple, we offer the same level of trust and reliability that institutional customers are used to from traditional markets – designed and optimized for a digital world.“
Hidden Road received a participation of Ripple for his series B financing and ripple acts as a platform customer, through which the company recognizes the operational control and advanced technological skills of Hidden Road.
Michael Higgins, CEO near Hidden Road, recently emphasized the need to comply with the regulatory regulations. Ripple emphasized the company’s achievement of receiving an EU Mica license that makes it one of the few approved companies in the EU.
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