Ripple has unveiled the rationale behind its earlier acquisition of Hidden Road, marking the launch of an innovative new service. This strategic move follows Ripple’s sidestepping of legal challenges with the SEC. Earlier this year, Ripple invested in acquiring three companies for a substantial $2.5 billion, with Hidden Road accounting for $1.25 billion of this total. Today, Ripple has shed light on this acquisition while introducing an exciting new product.
Ripple's New Prime Brokerage Service
Following the announcement of its latest offering, the price of XRP Coin soared to $2.48. This development is projected to enhance the price of XRP Coin both in the medium and long term. In a recent statement on Ripple’s official account, the company expressed its enthusiasm, stating that with the completion of the Hidden Road acquisition, Ripple is now the pioneering crypto company to possess and manage a global, multi-asset prime broker.
The Role of Hidden Road in Ripple's Future
Hidden Road is renowned for providing sophisticated services like clearing, prime brokerage, and financing in the realms of FX, crypto assets, derivatives, swaps, and fixed income securities. Today marks the formal transformation of Hidden Road into Ripple Prime. The acquisition has already resulted in a tripling of Hidden Road’s business size this year. Now operating under Ripple’s banner, it will deliver asset management and brokerage services, broadening Ripple’s horizons.
Ripple Prime is poised to play a pivotal role in expanding Ripple’s capabilities. This new entity aims to substantially increase the utility and reach of Ripple’s stablecoin, RLUSD. Presently, RLUSD is utilized as collateral for a range of prime brokerage products. The number of derivative clients opting to maintain their balances in RLUSD is anticipated to rise sharply in the coming months.
Key Takeaways from the Acquisition:
- •Ripple acquired Hidden Road for $1.25 billion as part of a $2.5 billion investment.
- •The acquisition transformed Hidden Road into Ripple Prime, expanding its services.
- •XRP Coin saw a notable increase to $2.48 after the announcement.
- •RLUSD is increasingly used as collateral for prime brokerage products.
This milestone reflects Ripple’s broader strategic effort to deepen its impact in the crypto industry by integrating advanced financial services with its innovative blockchain technologies. Ripple Prime not only enhances Ripple’s portfolio but also positions it uniquely within the financial sector, highlighting its potential for continued growth and influence in the market.