Source: Cointelegraph Original: "{title}"
The blockchain-based payment network Ripple announced on April 8 that it has acquired the major cryptocurrency broker Hidden Road for $1.25 billion. This is one of the largest mergers in the cryptocurrency industry to date.
This transaction will make Ripple the first cryptocurrency company to own and operate a global multi-asset major broker. According to the company's announcement on April 8, this acquisition is expected to make Ripple the largest non-bank major broker in the world, with Hidden Road currently clearing over $3 trillion across more than 300 institutions.
The acquisition also aims to solidify the position of Ripple USD (RLUSD), a stablecoin aimed at institutions that Ripple plans to launch in December 2024.
Ripple has been a client of Hidden Road for years and has "personally experienced their extensive expertise," Ripple CEO Brad Garlinghouse stated in a post on the X platform on April 8.
He also mentioned that Hidden Road's annual clearing of $3 trillion will utilize Ripple-supported XRP and its underlying decentralized public blockchain—XRP Ledger (XRPL).
Source: Brad Garlinghouse
"Instead of waiting up to 24 hours for transaction settlement through fiat channels, Hidden Road will use XRPL for the clearing of some transactions, and importantly, use RLUSD as collateral for its major brokerage services," Garlinghouse wrote on the X platform.
"The price tag is not the most important thing—what matters is that this transaction marks a once-in-a-lifetime opportunity for cryptocurrency to enter the largest and most trusted traditional markets, and vice versa," the CEO added.
Garlinghouse stated that this move comes at a critical moment for the U.S. digital asset industry and makes a significant contribution to the market amid regulatory changes in the U.S.
"We are at a turning point in the next phase of digital asset adoption—due to the end of the former U.S. SEC regulation, the U.S. market is truly opening for the first time, and the market is maturing to meet the needs of traditional finance," Garlinghouse said, adding:
"With these tailwinds, we continue to seek opportunities to make large-scale changes in the industry, leveraging our unique position and the advantages of XRP to accelerate our business and enhance our existing solutions and technologies."
Hidden Road founder and CEO Marc Asch expressed confidence in the company's expected growth.
"With new resources, licenses, and increased venture capital, this transaction will unlock significant growth for Hidden Road's business, allowing us to increase the capacity of our customer base, expand into new products, and serve more markets and asset classes," Asch stated.
Related: Stablecoin supply surged by $30 billion in the first quarter as investors hedge against volatility risks.
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