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Introduction
Ripple has completed its landmark $1.25 billion acquisition of non-bank prime broker Hidden Road, rebranding it as Ripple Prime in a strategic move that positions the company as the first cryptocurrency firm to operate a multi-asset prime brokerage. This acquisition significantly expands Ripple’s institutional services beyond digital assets into traditional financial markets, with business activity already growing threefold since the deal was announced in early April. The transaction also promises to boost the utility and reach of Ripple’s RLUSD stablecoin among institutional clients.
Key Points
- Ripple becomes first crypto company to own and operate multi-asset prime brokerage covering digital and traditional assets
- Business activity at Ripple Prime has grown threefold since the $1.25 billion acquisition was announced in April
- Expansion covers clearing, financing, and brokerage across derivatives, FX, swaps, and fixed-income products
A Landmark Acquisition in Crypto Finance
The completion of Ripple’s acquisition of Hidden Road represents one of the company’s most significant strategic moves to date, marking a substantial expansion of its operations beyond the digital assets sector. The $1.25 billion deal, announced in early April, has now been finalized with the rebranding of the acquired entity as Ripple Prime. This acquisition transforms Ripple from primarily a cryptocurrency-focused company into a comprehensive financial services provider for institutional clients, bridging the gap between traditional finance and digital assets.
According to the company’s announcement, Ripple Prime’s business activity has already experienced remarkable growth, increasing threefold since the acquisition was first revealed. This rapid expansion underscores the market demand for integrated financial services that span both traditional and digital asset classes. The acquisition positions Ripple as a pioneer in the cryptocurrency space, becoming the first crypto company to own and operate a multi-asset prime broker that covers a comprehensive range of financial products and services.
Expanding Institutional Services Beyond Digital Assets
Ripple Prime now offers institutional clients a complete suite of financial services including clearing, financing, and brokerage across multiple asset classes. The platform covers digital assets alongside traditional financial instruments such as derivatives, swaps, foreign exchange, and fixed-income products. This comprehensive approach allows institutional investors to manage their entire portfolio through a single provider, eliminating the need to work with multiple specialized firms for different asset classes.
The expansion into traditional financial markets represents a strategic pivot for Ripple, which has historically been associated primarily with its XRP cryptocurrency and cross-border payment solutions. By integrating Hidden Road’s established prime brokerage infrastructure, Ripple can now offer institutional clients the sophisticated financial tools and services they require while maintaining exposure to digital assets. The company expects continued growth from both new customers attracted by the expanded service offering and existing clients seeking more comprehensive financial solutions.
Boosting RLUSD Stablecoin Utility and Reach
A key benefit of the Hidden Road acquisition is the enhanced utility and expanded reach it provides for Ripple’s RLUSD stablecoin. As institutional clients increasingly adopt Ripple Prime’s multi-asset services, the RLUSD stablecoin gains natural integration points across various financial products and transactions. This creates multiple use cases for the stablecoin within institutional finance, from settlement and collateral to trading and risk management.
The integration of RLUSD into Ripple Prime’s comprehensive financial ecosystem positions the stablecoin to compete more effectively in the crowded stablecoin market. By embedding RLUSD directly into prime brokerage operations spanning both traditional and digital assets, Ripple creates built-in demand for its stablecoin among institutional users. This strategic move could significantly accelerate RLUSD adoption among the very client base that drives the largest volumes in financial markets, potentially establishing it as a major player in the institutional stablecoin space.
Future Growth and Market Implications
The threefold growth in Ripple Prime’s business activity since the acquisition announcement signals strong market reception to Ripple’s expanded service offering. This rapid expansion suggests that institutional clients are actively seeking integrated solutions that bridge traditional finance and digital assets. The company’s expectation of continued growth from both new and existing customers indicates confidence in the long-term viability of this business model.
Ripple’s successful acquisition and integration of Hidden Road into Ripple Prime sets a new standard for cryptocurrency companies seeking to expand into traditional financial services. The move demonstrates how crypto-native firms can leverage their technological expertise while acquiring established financial infrastructure to create comprehensive solutions for institutional clients. As the first cryptocurrency company to own and operate a multi-asset prime broker, Ripple has established a significant competitive advantage that could reshape how institutional investors access both traditional and digital asset markets.
📎 Read the original article on cointelegraph.com