Ripple is set to acquire prime brokerage firm Hidden Road for $1.25 billion, marking one of the largest acquisitions to date in the digital asset sector. The deal signals an effort by Ripple to deepen its role in institutional finance as the lines between traditional financial markets and digital assets continue to blur.

Announced Tuesday, the acquisition would give Ripple full ownership of Hidden Road, a fast-growing broker known for offering clearing, financing, and prime brokerage services across a mix of assets—including foreign exchange, crypto, and fixed income. The company reportedly clears $3 trillion annually and serves over 300 institutional clients.

The transaction is expected to close in the coming months, pending regulatory approvals.

By acquiring Hidden Road, Ripple claims to position itself as a more central player in servicing institutional demand—a shift that reflects broader industry efforts to attract banks, hedge funds, and asset managers that have been hesitant to engage with digital assets due to regulatory uncertainty and operational risk.‍

Changes to Operations and Collateral

As part of the transition, Hidden Road is expected to begin shifting its post-trade processes to the XRP Ledger, Ripple’s public blockchain network. While Ripple has promoted XRPL for enterprise use, it remains to be seen how widely the technology will be adopted in institutional workflows.

Ripple’s USD-backed stablecoin, RLUSD, will also be used within Hidden Road’s collateral and margining systems. The companies say this will allow for more efficient cross-margining between traditional and crypto assets, though the practical implications of that integration have yet to be tested at scale.‍

Industry Context

The acquisition comes amid a changing regulatory and market environment in the US, where crypto firms are cautiously re-engaging with regulators following several years of tension. Ripple, which previously faced legal challenges from the SEC over its XRP token, appears to be positioning itself for more active participation in US financial markets.

Hidden Road, meanwhile, gains access to greater financial backing and licenses that may allow it to expand its reach in new markets and asset classes.