Ripple Labs Acquires Hidden Road for $1.25 Billion to Expand DeFi Services
Ripple Labs has acquired prime brokerage firm Hidden Road for $1.25 billion, marking one of the largest transactions in the crypto sector.
- The acquisition aims to bridge traditional finance and digital markets.
- Hidden Road services over 300 financial institutions and clears around $3 trillion annually.
- This move enhances Ripple's access to institutional players integrating blockchain technology.
- CEO Brad Garlinghouse highlighted it as a unique opportunity to enter established financial markets.
- Ripple plans to utilize the XRP Ledger for faster trade settlements, reducing reliance on traditional banking systems.
- Hidden Road will adopt Ripple’s RLUSD stablecoin as collateral for trading.
- The acquisition comes after Ripple's legal resolution with the US SEC, confirming they are in the final phase of the case.
- This aligns with Ripple's strategy to dominate institutional decentralized finance (DeFi) and improve cross-border payment services.
- Ripple holds over 60 regulatory licenses globally, enabling it to provide digital asset custody and tokenization services.
- The deal is pending regulatory approval and is expected to close shortly.