Ripple's $1.25B Hidden Road Acquisition on April 8 Gains FINRA Broker-Dealer License by April 17

Ripple, the blockchain payments firm behind XRP, has made a strategic leap into traditional finance with its $1.25 billion acquisition of Hidden Road, a prime brokerage firm, finalized on April 8, 2025. Just one week later, on April 17, Hidden Road announced it had secured a broker-dealer license from the Financial Industry Regulatory Authority (FINRA), enhancing its ability to offer fixed-income prime brokerage services to institutional clients.

According to a press release, this milestone positions Ripple as the first crypto-native company to own a multi-asset prime brokerage platform, bridging digital and traditional financial markets.

Announced on April 8, 2025, Ripple's acquisition of Hidden Road marks one of the largest deals in digital asset history, valued at $1.25 billion. Hidden Road, a global credit network for institutions, provides prime brokerage, clearing, and financing services across traditional and digital assets, handling over $3 trillion annually for more than 300 top-tier financial institutions. The acquisition, backed by Ripple's significant balance sheet, aims to scale Hidden Road's capabilities to meet growing institutional demand, positioning it to compete with major crypto prime brokerages like Coinbase Prime and FalconX.

On April 17, Hidden Road's wholly-owned subsidiary, Hidden Road Partners CIV US LLC, received FINRA approval to operate as a broker-dealer. This license allows Hidden Road to expand its fixed-income prime brokerage services, offering regulatory-compliant clearing and financing for fixed-income securities to institutional clients. Noel Kimmel, President of Hidden Road, stated, "Our broker-dealer registration is a significant step in the development of Hidden Road's fixed-income prime brokerage platform and bolsters our capabilities in traditional financial markets." The FINRA membership underscores Hidden Road's commitment to regulatory compliance and investor protection, enhancing its credibility in the financial sector.

The Hidden Road acquisition and FINRA registration position Ripple to bridge traditional and crypto markets, leveraging XRP and RLUSD for institutional services. The deal aligns with growing interest in XRP-focused exchange-traded funds (ETFs). Ripple's chief technology officer, David Schwartz, described the acquisition as a "defining moment for the XRP Ledger," highlighting its potential to expand use cases for instant, cross-asset settlement in traditional markets.

The market for XRP-focused exchange-traded funds (ETFs) is gaining strong momentum, with multiple products launched or awaiting regulatory approval. Asset management firm Hashdex secured approval from Brazil's securities regulator, the Comissão de Valores Mobiliários (CVM), in February 2025 to launch the world's first spot XRP ETF. Additionally, companies such as Grayscale, 21Shares, and Bitwise have introduced spot XRP ETFs, which are currently pending approval from the U.S. Securities and Exchange Commission (SEC).