Ripple acquires Hidden Road for $1.25 billion, aiming to improve infrastructure for institutional clientele in a significant manner.
In a significant move to expand its presence in the digital assets sector, Ripple has announced the acquisition of Hidden Road, a cryptocurrency-focused prime broker, for $1.25 billion. The deal, which is set to close in the coming months pending regulatory approval, was structured as a mix of cash, XRP token allocation, and stock.
The acquisition, Ripple's first in the blockchain-enabled payments provider space, marks a strategic move to broaden its services and appeal to larger institutions in the crypto market. The deal comes at a time when U.S. crypto regulation is shifting towards a clearer framework, with top securities and capital markets regulators focusing on developing a more defined regulatory framework for digital assets, attracting traditional investors.
Hidden Road, which specializes in cryptocurrencies and foreign exchange, similar to Coinbase Prime and FalconX, reportedly facilitated the transfer of $3 trillion worth of funds in 2024, demonstrating its significant transaction volume. This potential to attract larger institutions was a key factor in Ripple's decision to acquire the prime broker.
CEO Brad Garlinghouse stated that Ripple needs to have the infrastructure in place to appeal and expand to a larger segment of the biggest bulge bracket institutions. The acquisition of Hidden Road is part of Ripple's strategy to expand beyond cross-border payments into trading, custody, and lending, positioning itself as a full-service financial hub for digital assets.
The deal also aligns with Ripple's broader efforts to integrate its services within traditional finance, including the use of its stablecoin, RLUSD, as collateral in institutional transactions. Given Ripple's ongoing push for a national banking charter, it is likely that the acquisition aims to align with regulatory standards and compliance in the financial sector.
Notably, Ripple has been actively engaging with regulatory environments, particularly in the context of its recent settlement with the U.S. Securities and Exchange Commission (SEC) in June 2025. However, specific regulatory approvals or challenges related to the Hidden Road acquisition are not mentioned in the available information.
Last month, Ripple received a license from the Dubai Financial Services Authority (DFSA) to provide crypto payments and services in the United Arab Emirates. The acquisition of Hidden Road, which is the first blockchain-enabled payments provider to be licensed by the DFSA, further strengthens Ripple's presence in the region.
Castle Island Ventures, Coinbase Ventures, and Citadel Securities were among the investors in Hidden Road's Series A round, which took place in 2022 and was worth $50 million. As part of the deal, Ripple will inject billions of dollars of capital to provide immediate scale and satisfy the demand for Hidden Road's prime brokerage services.
The acquisition is another strategic move by the crypto payments infrastructure company, reflecting its commitment to growing its presence in the digital assets sector and attracting larger institutions to its platform.
- The buying of Hidden Road by Ripple will allow them to expand beyond cross-border payments, positioning themselves as a comprehensive financial hub for digital assets, offering services such as trading, custody, and lending.
- The acquisition of Hidden Road marks a movement towards integrated services within traditional finance, with Ripple's strategic focus on attracting larger institutions, as demonstrated by Hidden Road's significant transaction volume of $3 trillion in 2024.
