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Ripple Labs has revealed a significant acquisition aimed at revitalizing the market during an otherwise bleak week. Announcing via X (formerly Twitter), the cryptocurrency firm declared the purchase of Hidden Road, a brokerage, clearing, and financing entity as it aims to secure its position as the frontrunner for institutional investors venturing into the digital assets landscape.
Ripple Secures Hidden Road for $1.25 Billion
The announcement on Tuesday by Ripple has further cemented the objective that the cryptocurrency company has long advocated, which is to facilitate instant and efficient value transfer for traditional and institutional investors entering the digital asset arena.
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As CEO Brad Garlinghouse described in a separate post on X, the choice to acquire Hidden Road for $1.25 billion stems from a longstanding relationship with the firm. Garlinghouse disclosed that Ripple is aware of the extensive expertise of Hidden Road, positioning it as a prime candidate for acquisition.
The incorporation of the XRP Ledger by Hidden Road will enable economical and rapid value transfers to the brokerage’s clientele, which transacts over $3 trillion annually. A fraction of this substantial value is projected to flow through the ledger, in addition to utilizing the RLUSD stablecoin as collateral for brokerage services.
Moreover, Hidden Road will enhance its capability for value transfer, allowing Ripple to manage even greater transaction volumes. “With this agreement and the support of Ripple’s substantial balance sheet, Hidden Road is poised to significantly increase its service capacity and become the largest non-bank prime broker worldwide,” Garlinghouse’s statement indicated.
This acquisition follows Ripple’s purchase of Standard Custody in February 2024. Standard Custody provided an online platform that delivered clients with digital asset custody solutions, facilitating Ripple’s entry into the custody sector as well.
XRP Price Reaction
In spite of the Ripple announcement, the XRP price has remained subdued, continuing to struggle beneath $2, which has since shifted to act as resistance. As of this writing, XRP is holding steady at $1.96, despite experiencing nearly 10% growth in the previous 24 hours.
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According to data from Coinmarketcap, the XRP daily trading volume has observed a significant decline, decreasing around 24% in the past day. This indicates a reduction in investor participation, attributed to the bearish trends that persist in the cryptocurrency market.
A recovery from this point hinges heavily on Bitcoin, which continues to command the market and lead the charge.
Chart from Tradingview.com
