Ripple Drops $1.25 Billion to Snag Hidden Road: A Crypto Power Move!

Ripple's Big Bet on Institutional Growth

Ripple is shaking up the crypto world with a massive $1.25 billion acquisition of prime brokerage firm Hidden Road. This blockbuster deal marks the second time this year a crypto company has splashed out over a billion bucks—hot on the heels of FTX's $1 billion BlockFi buyout.

Cash, XRP, and Stock: The Deal Breakdown

Ripple's strategy? Lure in those big institutional investors with a buffet of services. They're shelling out mostly cash, but there's also a tasty mix of XRP and Ripple stock in the mix. And guess what? Hidden Road's founder, Marc Asch, isn't going anywhere—he'll keep steering the ship under Ripple's flag.

CEO Brad Garlinghouse's Vision

"Ripple needs to make sure we have the infrastructure in place to appeal and expand to a larger segment of the biggest bulge bracket institutions," CEO Brad Garlinghouse fired off to Fortune. He's not messing around—Ripple's aiming for the top.

Timeline and Challenges

Garlinghouse spilled to CNBC that he's gunning to seal the deal by Q3 2025 at the latest. But it wasn't all smooth sailing for Hidden Road. They hit some growth snags due to balance sheet constraints and had to go hunting for outside cash to scale up.

Integration and Investment Plans

As part of this mega-merger, Hidden Road's diving into Ripple's stablecoin, RLUSD, and might even tap into the XRP blockchain for slicker transaction settlements. Ripple's not stopping there—they're ready to pump billions into Hidden Road to supercharge its operations and meet the skyrocketing demand for prime brokerage services in the crypto market.

Hidden Road's Rise to Prominence

Founded in 2018 by Marc Asch, Hidden Road's been on a rocket ride to the top of the crypto prime brokerage scene, going head-to-head with heavyweights like FalconX and Coinbase Prime. They've moved a staggering $3 trillion in fund transfers in 2024 alone. Before this deal, they raked in $50 million in a Series A round backed by big names like Castle Island Ventures, Coinbase Ventures, and Citadel Securities.