Quick take:
- The deal was structured as mostly cash, XRP token allocation and stock, Fortune reported.
- The acquisition is set to close in the coming months pending regulatory approval.
- As part of the deal, inject billions of dollars of capital to provide immediate scale and satisfy the demand for Hidden Road’s prime brokerage.
Ripple has announced the acquisition of crypto-friendly prime broker Hidden Road in a deal worth $1.25 billion. According to the announcement on Tuesday, the deal was structured as mostly cash, XRP token allocation and stock.
The acquisition represents another strategic move by the crypto payments infrastructure company as it aims to integrate a broader range of services that will attract large institutions. “Ripple needs to make sure we have the infrastructure in place to appeal and expand to a larger segment of the biggest bulge bracket institutions,” CEO Brad Garlinghouse told Fortune.
Last month, Ripple received a license from the Dubai Financial Services Authority (DFSA) to provide crypto payments and services in the United Arab Emirates, making it the first blockchain-enabled payments provider licensed by the Authority.
Ripple’s latest acquisition is set to close in the coming months pending regulatory approval. As part of the deal, Ripple said it will “inject billions of dollars of capital to provide immediate scale and satisfy the demand for Hidden Road’s prime brokerage.”
The deal also comes at an opportune time amid shifting gears in the sphere of U.S. crypto regulation. The country’s top securities and capital markets regulators are increasingly leaning toward developing a clearer regulatory framework for digital assets, a move that has gotten the attention of traditional investors.
Hidden Road’s leading products are cryptocurrencies and foreign exchange, which puts it in the same category as Coinbase Prime and FalconX. In 2024, it reportedly facilitated the transfer of $3 trillion worth of funds and secured a $50 million Series A round backed by Castle Island Ventures, Coinbase Ventures and Citadel Securities in 2022.
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