Ripple (XRP) is taking a big step towards Wall Street with the takeover of Prime Broker Hidden Road. The $ 1.25 billion deal is not only one of the biggest acquisitions within the crypt world, but also a clear signal that the company focuses more than ever on institutional adoption.
Crossroads between traditional and crypto finances
With this acquisition, Ripple wants to close the gap between traditional financial institutions and the world of cryptocurrency. Hidden Road processes more than $ 3 trillion on transactions every year in Forex, derivatives and fixed interest products, and serves more than 300 institutional customers. This gives Ripple direct access to a wide network of professional market players.
According to Ripple CEO Brad Garlinghouse, the timing is perfect. He states that the American market is finally starting to offer room for broader acceptance of crypto within institutional frameworks. “We are at a tipping point,” said Garlinghouse, who emphasizes that Ripple wants to expand faster with the help of XRP and its own ecosystem.
A striking element in the deal is the plan to have Hidden Road’s Prime Brokerage platform work with RLUSD, Ripple’s new stablecoin that is linked to the US dollar. This will be used as collateral for cross-margining between traditional assets and cryptocurrencies. Ripple thus calls RLUS the first Stablecoin to connect such markets in this way.
Ripple Hidden Road also wants to provide extra capital to further scale up the clearing and financing capacity. The goal: to grow into the largest non-banking Prime Broker in the world.
Migration to the XRP Ledger
In addition, Hidden Road will transfer its post-trade processes to the XRP Ledger. That should ensure faster and cheaper settlements, something that Ripple sees as proof of the power of his blockchain for institutional applications.
Ripple was previously involved with Hidden Road as an investor in a B-round series and also used the platform as a customer. Because of that close cooperation, integration seems to be relatively smooth. The completion of the acquisition is expected in the coming months, depending on the approval of supervisors.
With previous Megadeals such as Kraken’s takeover of Ninjatrader ($ 1.5 billion) and Stripe’s purchase of Bridge ($ 1.1 billion), a new phase seems to have arrived in which established players in crypto full of bets on professional infrastructure.
Ripple now has more than 60 licenses worldwide, and this takeover could be the starting signal for a new wave of institutional adoption in Crypto.
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Source: https://newsbit.nl/ripple-neemt-hidden-road-over-voor-125-miljard/
