Ripple has officially closed its acquisition of non-bank prime broker Hidden Road, rebranding the entity as Ripple Prime. This strategic move represents one of Ripple's most significant transactions to date, marking a substantial expansion of its operations beyond the digital assets sector.
With this acquisition, Ripple positions itself as the first crypto company to own and operate a multi-asset prime broker. Ripple Prime will offer a comprehensive suite of services, including clearing, financing, and brokerage, catering to institutional clients across digital assets, derivatives, swaps, foreign exchange, and fixed-income products.
The business activity within Ripple Prime has already experienced threefold growth since the $1.25 billion acquisition was announced in early April. Ripple anticipates further expansion driven by both new and existing customers.
Ripple is among several crypto-native firms actively bridging the gap between traditional finance (TradFi) and the digital asset space. These firms are integrating blockchain and crypto products to enable banks to conduct cross-border transactions and other financial operations.
Ripple Aims to Integrate Blockchain into Prime Brokerage Operations
Ripple, the issuer of the XRP (XRP) cryptocurrency, stated that Ripple Prime will "significantly enhance the utility and reach" of its Ripple USD (RLUSD) stablecoin.
"Ripple’s foundational digital asset infrastructure across payments, crypto custody and stablecoin, as well as the use of XRP, will complement the services offered within Ripple Prime."
Looking ahead, Ripple plans to integrate blockchain capabilities directly into Ripple Prime's operations. This integration is intended to streamline processes and optimize costs.
The RLUSD stablecoin is expected to be a key component in this transition. Ripple noted that some derivatives customers are already choosing to hold their balances in the US dollar stablecoin, and it is also being utilized as collateral for various prime brokerage products.
Ripple Continues Strategic Acquisition Strategy
This acquisition follows a series of strategic moves by Ripple. The company recently acquired treasury management system provider GTreasury last Thursday and the stablecoin-powered payment platform Rail in August.
These agreements build upon previous acquisitions, including Standard Custody in June 2024 and Metaco in June 2023. These six strategic deals within a 28-month period underscore Ripple's comprehensive strategy to offer a full spectrum of blockchain and crypto products to institutional clients.