Ripple Completes Acquisition to Modernize Prime Brokerage
Ripple made headlines earlier this year with its strategic decision to acquire Hidden Road, a rapidly growing non-bank prime broker renowned for its comprehensive range of services for institutions. This acquisition marks a significant milestone as Hidden Road transitions to become Ripple Prime, solidifying Ripple’s position as the pioneer in the ownership and operation of a global, multi-asset prime broker within the cryptocurrency realm.
Since the announcement of the acquisition, Ripple Prime has experienced exponential growth, exceeding initial expectations and demonstrating an immense surge in business activity. This successful integration of Hidden Road into Ripple’s ecosystem underscores the mutual benefits of combining forces to facilitate the widespread adoption of digital assets by institutional players on a global scale.
The collaboration between Ripple and Hidden Road is built on a shared vision to revolutionize the traditional financial landscape by leveraging innovative technologies and fostering a seamless synergy between their respective areas of expertise. Ripple’s established digital asset infrastructure, encompassing a spectrum of services from payments to crypto custody, combined with the utilization of the XRP digital asset, enriches the offerings of Ripple Prime. Looking ahead, Ripple Prime aims to harness blockchain capabilities to optimize operational efficiency and cost-effectiveness, positioning itself as a trailblazer in the digital asset brokerage sector.
One standout feature of Ripple Prime is its amplification of the utility and accessibility of Ripple’s stablecoin, RLUSD. The deployment of RLUSD as collateral for various prime brokerage products has garnered significant interest from derivatives customers who are increasingly opting to hold their balances in RLUSD. The exceptional regulatory compliance standards maintained by RLUSD have instilled confidence among institutional users, paving the way for its seamless integration into their financial operations. Notably, RLUSD received accolades for stability, governance, and asset backing, securing the top rank among stablecoins in a report by Bluechip which awarded it an ‘A’ rating. In a strategic move, Ripple appointed The Bank of New York Mellon Corporation (BNY) as the primary reserve custodian for RLUSD, underscoring Ripple’s commitment to meeting the stringent requirements of institutional users and regulatory authorities.
The acquisition of Hidden Road is part of a series of strategic moves by Ripple to enhance its portfolio and expand its global presence. Notable acquisitions in recent years include the Treasury Management System provider GTreasury, the stablecoin-powered payment platform Rail, as well as Standard Custody and Metaco. The shared ethos of technological innovation, effective risk management, and operational excellence has cemented the partnership between Ripple and Hidden Road, setting the stage for continued integration and growth under the leadership of Ripple CEO Brad Garlinghouse and Hidden Road Founder and CEO Marc Asch.
As the integration progresses, both teams are optimistic about the future prospects of Ripple Prime and are dedicated to unlocking the full potential of digital assets for institutional clients. The strategic move to acquire Hidden Road and rebrand it as Ripple Prime underscores Ripple’s commitment to driving innovation and reshaping the financial landscape with groundbreaking solutions. Explore the possibilities offered by Ripple Prime to embark on your digital asset journey today.
