Ripple Acquires Hidden Road for $1.25 Billion, Boosting XRP Demand

Ripple has made a significant move into institutional finance with the acquisition of prime brokerage firm Hidden Road for $1.25 billion. This deal, announced on April 8, is one of the largest in the crypto space and positions Ripple as the first crypto firm to own and operate a global, multi-asset prime broker. The acquisition is expected to have a profound impact on the demand for XRP, Ripple's native cryptocurrency.

Hidden Road serves over 300 institutional clients and handles $10 billion in trades daily. With the acquisition, these trades will now be settled on the XRP Ledger (XRPL), meaning financial giants such as hedge funds and market makers will require XRP to complete transactions. Even a modest shift of this daily volume to the XRPL could drive substantial demand for XRP. Each settlement on the XRPL requires XRP, while the RLUSD stablecoin will be introduced as collateral in brokerage operations. This creates a unified ecosystem where both XRP and RLUSD are embedded into core institutional workflows.

This makes RLUSD the first stablecoin enabling cross-margining between digital assets and traditional markets. As institutional clients start using XRP and RLUSD to reduce costs and increase transaction efficiency, demand for both assets will rise in tandem. With a $3 trillion-per-year pipeline now connected to the XRP ecosystem, Ripple has effectively laid the groundwork for mass institutional integration. This acquisition is a structural shift that could reshape the utility and valuation of XRP for years to come.

Jake Claver, Managing Director of Digital Ascension Group, highlighted the significance of this acquisition. He noted that as a fraction of the $10 billion daily volume starts settling through XRP, demand for XRP will skyrocket. These are not retail traders but hedge funds and market makers who need XRP to power their operations, and they will be buying lots of it. This shift could significantly boost XRP’s real-world use and, with it, long-term demand.

In summary, Ripple's acquisition of Hidden Road is a strategic move that aims to enhance its institutional offerings and expand the real-world utility of XRP. By integrating Hidden Road's services into its broader digital asset infrastructure, Ripple is poised to significantly boost the demand for XRP, as it will be utilized more frequently in high-value transactions. The acquisition also positions Ripple as a leader in the crypto industry, with a strong focus on providing stable and reliable financial services.