Ripple Becomes First Crypto Company to Own a Prime Broker

Blockchain payments firm Ripple has made one of the biggest acquisitions in the industry, with RLUSD and XRP set to play major roles in the new system.

Ripple Labs has made a big move in the world of finance. The company bought Hidden Road, a fast-growing prime brokerage firm, for a staggering $1.25 billion in a new development. 

Hidden Road is a well-known prime broker with over 300 financial institutions. The company handles about $3 trillion in transactions every year. This acquisition has made Ripple the first crypto company to own and run a fully multi-asset prime broker. 

This deal has gained attention from top financial companies around the world. One of the first to react was Japan’s SBI Holdings, a long-time partner of Ripple.

SBI Holdings Supports the Deal  

Shortly after the deal was announced, SBI Holdings released a statement to show its full support. SBI and its subsidiary SBI, Ripple Asia, described the acquisition as a major milestone in Ripple’s history.

According to SBI, Ripple used a combination of XRP, cash, and treasury stock to pay for Hidden Road. This payment method shows how Ripple continues to integrate digital assets with traditional finance.

SBI also revealed that Ripple plans to invest billions of dollars into Hidden Road’s operations. This includes boosting its clearing systems, financing platforms, and overall prime brokerage services. This investment aims to help Hidden Road meet the growing demand for capital and expand its services quickly.

SBI’s announcement also revealed that Ripple’s stablecoin RLUSD will play a key role. This stablecoin is pegged to the U.S. dollar and designed for business and enterprise use. 

SBI stated that RLUSD will be used within the Hidden Road platform to support cross-margining services. This process allows users to trade multiple asset classes using a single margin account. This could make RLUSD a strong option for banks and financial firms. 

Ripple also plans to move Hidden Road’s post-trade operations onto the XRP Ledger (XRPL). This is Ripple’s blockchain network, known for fast and low-cost transactions.  

Ripple’s CEO, Brad Garlinghouse, said Hidden Road currently uses traditional payment systems, which are often slow and expensive. Using XRPL and XRP, some of the $3 trillion in annual transactions can now be settled faster and at a lower cost.  

SBI’s Long-Term Partnership with Ripple

SBI Holdings has been working with Ripple since 2016. Together, they created SBI Ripple Asia, which helps banks use XRP to improve cross-border payments for banks and financial service providers in Asia.

Even during Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC), SBI remained a loyal partner. Now that the lawsuit is officially over, SBI believes Ripple is ready to grow even more. 

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