- Ripple announced a deal for Hidden Road, an exchange that processes $3 trillion in crypto transactions annually on all markets. The purchase price is $1.25 billion.
- Hidden Road will integrate XRP Ledger to record and clear trades. Ripple plans on using its RLUSD stablecoin for collateral.
Ripple Labs is one of the largest players in the digital assets industry. acquiring Hidden Road For $1.25 billion. Ripple becomes the first crypto-company to be the owner and operator of a global multi-asset Prime Broker in the evolving digital asset market.
Hidden Road offers a wide range of institutional services such as clearing, prime brokers, lending, etc., in multiple asset classes, like foreign exchange, digital assets, derivatives and swaps. Hidden Road has a large clientele of institutional investors, with over 300 institutions and $3 trillion in cleared assets annually.
Ripple’s Stablecoin and Brokerage Services
Brad Garlinghouse, CEO of Ripple, said that the acquisition is crucial as U.S. regulation becomes clearer and digital assets mature. He said, “We are at an inflection point for the next phase of digital asset adoption. The U.S. market is effectively open for the first time due to the regulatory overhang of the former SEC coming to an end, and the market is maturing to address the needs of traditional finance.”
The agreement has a major impact on Ripple’s stablecoin RLUSD which launched just in December 2024. RLUSD is to be used as collateral across Hidden Road’s entire range of prime brokerage products. This will reinforce its status as a top enterprise-grade stablecoin backed by USD. RLUSD is a stablecoin that will be competing with the old-school players like Tether’s USDT Circle’s USDC
Hidden Road will also move all of its post-trade operations to the XRP Ledger. This is to take advantage of its scalability, and increase its efficiency. This move highlights XRPL’s ability to be the go-to institutional blockchain for decentralized financial (DeFi) and compliments Ripple’s efforts in advancing cross-border cheap payments, as well addressing the inefficiencies of the traditional banking system.
Hidden Road’s CEO Marc Asch is optimistic about the new partnership. According to him, the deal will allow the firm new growth prospects, including the ability to service more markets and assets classes and expand into new products.
The SEC has approved the first leveraged XRP ETF in the United States. Teucrium Investments, an asset management company in Vermont. has launched Teucrium’s 2x Daily XRP ETF will attempt to achieve double daily performance using swap agreements.
Although the crypto markets are experiencing a downward trend, a CNF update reported XRP could reach uncharted values of $5 or $7 by the first half 2025. At $1.87 XRP, it is valued by 2.10% more than the previous 24 hours.
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Source: www.crypto-news-flash.com
