#XRP 🗞️Ripple announced on Tuesday (8) an agreement to acquire the institutional brokerage Hidden Road for $1.25 billion. If completed, this will be the largest acquisition ever made by the crypto company, marking an important strategic move towards the integration between the cryptocurrency market and traditional finance.
Founded in 2018, Hidden Road provides clearing, prime brokerage, and financing services in various areas: foreign exchange, digital assets, derivatives, swaps, and fixed income. The company currently processes over $3 trillion annually, serving more than 300 institutional clients, including major hedge funds.
With this acquisition, Ripple would surpass the recent deal by Stripe, which acquired the Bridge platform for $1.1 billion. Ripple's CEO, Brad Garlinghouse, stated that the negotiation was driven by Hidden Road's growth limitations, which was seeking external capital to continue expanding.
“This is a big deal for Ripple, but also for the entire industry,” Garlinghouse said in an interview with CNBC. “As the crypto sector approaches traditional finance, we need high-level infrastructure to serve financial institutions interested in entering this market.”
Ripple is valued at $11.3 billion after a share buyback in 2024 and plans to use its own stablecoin RLUSD, launched in December, as collateral in Hidden Road's prime brokerage services after the acquisition is completed. According to Garlinghouse, the use of collateral is essential in this type of operation, especially for funds looking to leverage complex positions such as short sales.
It is worth noting that the deal still depends on the necessary regulatory approval. The expectation is that the agreement will be finalized by the third quarter of 2025.
Ripple has been riding a positive wave after ending a long dispute with the SEC, which recently withdrew a lawsuit accusing the company of offering securities illegally.
“Businesses like this make much more sense in a favorable regulatory environment, rather than amidst hostile legal tactics,” said the CEO, who has been a vocal critic of the SEC and its former leader, Gary Gensler.
With this strategic move, Ripple positions itself to lead the convergence between the crypto universe and the traditional financial system, expanding its operations on a global scale.
Another one for RIPPLE! 🥊
