Ripple, the blockchain firm behind XRP (CRYPTO: XRP), has signed an agreement to acquire prime brokerage firm Hidden Road in a deal valued at $1.25 billion.

The acquisition represents Ripple's most significant move yet to expand its offerings for institutional clients, according to CEO Brad Garlinghouse.

What Happened: Speaking to Fortune, Garlinghouse emphasized the importance of building a stronger foundation to support demand from major financial institutions.

"To serve the biggest global players, Ripple must offer infrastructure that meets institutional standards," he noted.

The transaction includes a mix of cash, XRP tokens and equity, and is expected to close in the coming months, pending regulatory sign-off.

Hidden Road's founder, Marc Asch, will continue to lead the firm under Ripple's umbrella, assuming control of the prime brokerage division.

Prime brokers play a critical role in capital markets, offering services like custody, trading, and lending to hedge funds, asset managers, and large investment firms.

These operations require deep liquidity and robust capital support.

Ripple has committed to injecting billions of dollars into Hidden Road post-acquisition to rapidly scale its capabilities and meet surging demand.

Also Read: Treasuries And Private Credit Will Lead The Tokenization Wave, Says Plume Co-Founder Teddy Pornprinya

Why It Matters: The acquisition isn't just about scale—it's also about product synergy.

Hidden Road will incorporate Ripple's RLUSD stablecoin as collateral within its brokerage ecosystem and explore deploying the XRP Ledger to streamline settlement processes.

These integrations are intended to accelerate adoption of Ripple's core technologies within high-value institutional pipelines.

This deal unfolds amid a more favorable U.S. regulatory climate for digital assets.

The recent shift in federal policy—amplified by former President Donald Trump's vocal support for government adoption of Bitcoin (CRYPTO: BTC), has encouraged major players like Fidelity, BNY Mellon and even GameStop ( GME ) to increase their crypto exposure.

As a result, infrastructure providers like Hidden Road are becoming increasingly pivotal.

Founded in 2018 by hedge fund veteran Marc Asch, Hidden Road has grown rapidly in the digital asset and foreign exchange sectors, processing over $3 trillion in fund transfers in 2024 alone.

The company raised $50 million in a Series A funding round in 2022, drawing backing from firms like Citadel Securities, Coinbase Ventures , and Castle Island Ventures.

Hidden Road had reportedly been considering either a sale or new capital infusion since March, as per earlier Bloomberg coverage.

Ripple's acquisition now places it in direct competition with major crypto prime brokerages like Coinbase Prime and FalconX.

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