Ripple Completes Hidden Road Acquisition, XRP Soars
XRP, Ripple’s payment network’s native token, saw a significant increase in value following the completion of Ripple’s acquisition of global prime broker Hidden Road. The rebranded entity, now known as Ripple Prime, has experienced significant growth since the $1.25 billion deal was announced earlier this year. XRP is currently trading at around $2.50, representing a 5% increase on the day and an 8% increase over the past week, after enduring losses in the previous week due to a broader market decline. With a market capitalization of over $148 billion, XRP ranks as the fifth-largest digital asset in the market.
Ripple has highlighted that Ripple Prime’s business has expanded threefold following the completion of the acquisition. In addition, the company emphasized the increasing use of RLUSD, Ripple’s stablecoin with a market cap nearing $899 million, as collateral on the platform as more institutions embrace it. The rebranding of Ripple Prime signifies a significant milestone for the crypto industry, marking the first instance of a crypto company taking ownership of a global, multi-asset prime brokerage platform. This move reflects Ripple’s strategic expansion beyond payment services into the realm of broader institutional finance.
Ripple is optimistic that this acquisition will enhance XRP’s practical application and foster greater trust in RLUSD among institutional players. The company envisions leveraging blockchain technology within Ripple Prime’s operations to streamline processes and optimize costs in the future. This development aligns with Ripple’s overarching goal of establishing a comprehensive digital asset infrastructure spanning payments, crypto custody, stablecoins, and the utilization of XRP in conjunction with Ripple Prime’s services.
The completion of this deal adds to Ripple’s series of recent acquisitions, including GTreasury, Rail, Standard Custody, and Metaco. Ripple CEO Brad Garlinghouse emphasized the importance of payments within the blockchain and cryptocurrency space, underscoring how Ripple’s growth in this sector reaffirms the significance of payments as the primary use case for crypto and blockchain technology. Garlinghouse pointed out that payments represent the sector where Ripple first began, highlighting the complex, siloed, and inefficient infrastructure ripe for disruption and innovation through decentralized financial technologies.
In a significant development, Ripple and the U.S. Securities and Exchange Commission (SEC) recently reached an agreement to jointly dismiss their appeals, signaling the resolution of a protracted five-year legal battle. This move reflects a positive shift in crypto regulation, albeit amidst lingering uncertainties. Ripple’s strategic acquisitions, combined with regulatory developments, underscore the company’s commitment to driving innovation and reshaping the landscape of financial services.
