Finance, Ripple, Prime Brokers, M&A Among different issues, the deal is predicted to strengthen Ripple’s stablecoin ambitions.
Ripple has agreed to amass multi-asset prime brokerage agency Hidden Road for $1.25 billion, marking one of many largest M&A offers within the digital asset business thus far.
CoinDesk reported that Hidden Road was in active takeover talks final week.
Hidden Road clears over $3 trillion yearly throughout international change, derivatives, digital property, and glued revenue markets, with greater than 300 institutional shoppers, according to a press release asserting the deal.
The announcement did not specify the funding phrases of the deal.
“With the U.S. market finally opening up and digital assets maturing for institutional adoption, this is an inflection point,” Ripple CEO Brad Garlinghouse mentioned in a press release.
“We are accelerating our expansion, leveraging XRP and our broader solutions to bring traditional finance and crypto closer together,” Garlinghouse added.
Ripple mentioned it should inject contemporary capital into Hidden Road to increase its clearing, prime brokerage, and financing operations, aiming to make the agency the biggest non-bank prime dealer globally.
The deal additionally strengthens Ripple’s stablecoin ambitions. Hidden Road will use Ripple’s U.S. dollar-backed stablecoin, RLUSD, as collateral throughout its prime brokerage platform. That makes RLUSD the primary stablecoin enabling environment friendly cross-margining between conventional and digital asset markets, Ripple mentioned.
Hidden Road additionally plans emigrate its post-trade operations onto the XRP Ledger (XRPL), aiming to scale back prices and streamline settlement processes. Ripple expects the transfer will additional showcase XRPL as a blockchain optimized for institutional DeFi use circumstances.
Ripple, which participated in Hidden Road’s Series B spherical and has been a buyer of its platform, mentioned the deal is predicted to shut within the coming months pending regulatory approvals. The firm presently holds over 60 regulatory licenses globally.
Read extra: Crypto-Friendly Prime Broker Hidden Road in Active Takeover Talks: Sources
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