Jakub Porzycki | Nurphoto | Getty pictures
Ripple said on Tuesday that it was ready to buy the first -class broker company Hidden Road for 1.25 billion US dollars from the largest acquisition of the Krypto startup.
Hidden Road was founded in 2018 and offers clearing, prime brokerage and financing services for foreign exchange, digital assets, derivatives, swaps and fixed income. At the moment, it deletes more than 3 trillion dollars a year in the markets with over 300 institutional customers, including hedge funds.
The acquisition is one of the largest offers in the digital asset area and exceeds Stripe of 1.1 billion US dollars in February to buy Bridge, a platform that makes it easier to take out payment via stable coins.
Brad Garlinghouse, CEO von Ripple, said that the deal was raised after hidden street “restricted” due to balance sheet restrictions and began after an external capital.
“This is a big deal for Ripple – but also a big deal for the industry,” said Garlinghouse at CNBC by phone.
Ripple, which was last worth 11.3 billion US dollars when buying a share from 2024, said that after the transaction was completed, the plan for the use of his RLUSD StableCoin – which was introduced in December – used the company as security for the company.
“Collateral is the key” in the Prime Brokerage Services industry, said Garlinghouse. Hedge funds and other institutional investors usually require collateral. Take out loans or complex trading positions such as empty sales.
The acquisition of Ripple from Hidden Straße is subject to the necessary official permits. Garlinghouse announced CNBC to expect the deal to be completed in the third quarter of 2025 at the latest.
Regulatory tailwind
Ripple achieved a big win last month when the US securities and the stock exchange commissioned to fall a boring legal case against the company in which it was accused of performing an illegal offer of securities.
The crypto industry was generally reinforced by Donald Trump's re-election as US President, who advertised the advantages of crypto and promised a favorable guidelines for the industry.
When asked whether this procrypto gives regulatory surroundings of Ripple-impulse for his first-class takeover of brokers, Garlinghouse said that “shops like this are much more useful if they have a supportive regulatory environment-in contrast to the open warfare of open warfare.”
The Krypto boss previously criticized the SEC and his former leader Gary Gensler, who monitored aggressive legal measures against several crypto companies, including Ripple.