Ripple expands institutional push with $1.25B acquisition of prime broker Hidden Road, solidifying its commitment to fostering collaboration between traditional finance and crypto.
Ripple Expands Institutional Push Through $1.25B Acquisition of Prime Broker Hidden Road.
The acquisition marks one of the largest M&A deals in the digital asset industry to date and is expected to strengthen Ripple’s stablecoin ambitions.
Ripple is a real-time gross settlement system (RTGS) and currency exchange, and remittance network.
It was created by Ripple Labs Inc., a US-based technology company.
Ripple allows banks to settle transactions in real-time, reducing the need for intermediaries like SWIFT.
The network uses a consensus protocol called the Ripple Protocol Consensus (RPC).
As of 2022, 'over 300' partners worldwide and supports more than 40 currencies.
Strengthening Stablecoin Ambitions
By acquiring multi-asset prime brokerage firm Hidden Road for $1.25 billion, Ripple is taking a significant step towards expanding its institutional push. The deal not only enhances Ripple’s position in the market but also solidifies its commitment to fostering collaboration between traditional finance and crypto.
A New Era of Cross-Margining
The acquisition comes at an opportune time, as the U.S. market has finally opened up for digital assets. With this development, Ripple is poised to accelerate its expansion, leveraging XRP and its broader solutions to bring about a new era of cross-margining between traditional and digital asset markets.
XRP is a decentralized digital asset built on the Ripple Consensus Protocol, designed to facilitate fast and low-cost international payments.
Chris Larsen and Jed McCaleb created XRP in 2012, which has gained popularity for its scalability and efficiency.
With a total supply of 100 billion coins, XRP enables cross-border transactions without the need for intermediaries.
Its use cases range from remittances to banking and financial institutions, making it an attractive option for global payment systems.
Expanding Operations and Enhancing Services
As part of the acquisition, Ripple plans to inject fresh capital into Hidden Road’s clearing, prime brokerage, and financing operations. The goal is to make Hidden Road the largest non-bank prime broker globally, further solidifying its position in the market.
Migrating Post-Trade Operations onto XRP Ledger
Hidden Road also plans to migrate its post-trade operations onto the XRP Ledger (XRPL), aiming to reduce costs and streamline settlement processes. This move is expected to showcase XRPL as a blockchain optimized for institutional DeFi use cases, further underscoring Ripple’s commitment to innovation.
The XRP Ledger is an open-source, distributed ledger technology developed by Ripple Labs.
It supports the XRP cryptocurrency and enables fast and low-cost transactions.
The ledger uses a unique consensus algorithm called the 'Ripple Protocol' , which allows for high throughput and scalability.
The XRP Ledger also features a built-in exchange system, allowing users to trade between different currencies.
With its advanced architecture and features, the XRP Ledger has become a popular choice for financial institutions and businesses seeking efficient and secure payment solutions.
Regulatory Approvals and Future Outlook
The deal is expected to close in the coming months pending regulatory approvals. With over 60 regulatory licenses globally, Ripple is well-positioned to navigate the complexities of the industry.
Conclusion
Ripple’s acquisition of Hidden Road marks a significant milestone in its expansion into the institutional market. By strengthening its stablecoin ambitions and expanding its operations, Ripple is poised for continued growth and success in the digital asset space.
