Ripple acquires prime broker Hidden Road for $1.25 billion to expand institutional services

Ripple is acquiring Hidden Road in a $1.25 billion deal, marking the second billion-dollar-plus acquisition involving a crypto company this year—following FTX’s $1 billion purchase of BlockFi.

Ripple xrp-0.08% XRP is acquiring prime brokerage firm Hidden Road for $1.25 billion as part of its strategy to attract more institutional investors through a wider range of services. The deal will be primarily cash-based, along with a portion paid in XRP and Ripple stock. Marc Asch, the founder of Hidden Road, will continue to lead the brokerage under Ripple.

“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 told Fortune.

Garlinghouse told CNBC that he anticipates the deal will be finalized by the third quarter of 2025 at the latest.

Brad Garlinghouse explained that the acquisition came about after Hidden Road faced growth challenges due to balance sheet constraints and began seeking external capital to scale.

As part of the acquisition, Hidden Road will integrate Ripple’s stablecoin, RLUSD, into its offerings and may also utilize the XRP blockchain for more efficient transaction settlements. Ripple plans to invest billions into Hidden Road to scale its operations and meet the growing demand for prime brokerage services in the crypto market.

Founded in 2018 by Marc Asch, Hidden Road has quickly become a major player in the crypto prime brokerage space, competing with the likes of FalconX and Coinbase Prime. The firm reported $3 trillion in fund transfers in 2024. Previously, it raised $50 million in a Series A funding round backed by Castle Island Ventures, Coinbase Ventures, and Citadel Securities.