Ripple agreed to acquire the main brokerage firm of multiple assets Hidden Road for $ 1.25 billion, marking one of the largest M&A agreements in the digital asset industry to date.
Coindesk reported that Hidden Road was in active acquisition conversations last week.
Hidden Road Borra more than $ 3 billion per year in exchange for foreign exchange, derivatives, digital assets and fixed income markets, with more than 300 institutional clients, according to a press release, which did not specify the terms of financing the agreement.
The agreement is heated after the agreement last month for Crypto Exchange Kraken to buy Ninjatrader, a US futures negotiation platform. UU., For $ 1.5 billion. Few cryptographic agreements with announced values have exceeded $ 1 billion. Among them, Stripe of the payment processor ended an agreement to buy the Stablecoin platform bridge for $ 1.1 billion last year. In 2021, Galaxy Digital (GLXY), a Cryptographic Financial Services Company, agreed to buy a custody specialist for $ 1.2 billion in an agreement that abandoned a little more than a year later.
“Since the US market finally opens and that digital assets mature for institutional adoption, this is a turning point,” said Ripple CEO, Brad Garlinghouse, in a statement.
“We are accelerating our expansion, taking advantage of XRP and our broader solutions to bring traditional finances and cryptographic,” Garlinghouse added.
Ripple said he will inject new capital in Hidden Road to expand his compensation, main brokerage and financing operations, with the aim of turning the company into the largest main non -bank corridor worldwide.
The agreement also strengthens Ripple’s stablcoin ambitions. Hidden Road will use Stablecoin, backed by American Dollar, Ripld, as a guarantee on its main brokerage platform. That makes Rlusd the first stablecoin that allows efficient cross margin among traditional and digital asset markets, Ripple said.
Hidden Road also plans to migrate its operations after trade to the XRP LED (XRPL), with the aim of reducing costs and rationalizing liquidation processes. Ripple expects the movement to exhibit even more XRPL as an optimized block chain for institutional defi use cases.
Ripple, who participated in the Hidden Road Series Ronda and has been a client of his platform, said the agreement is expected to close in the coming months waiting for regulatory approvals. Currently, the company has more than 60 regulatory licenses worldwide.
Read more: Prime Broker of Cryptographic Hidden in Active Acquisition Conversations: Fuentes
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Update (April 8, 15:30 UTC): Add the fourth paragraph with other acquisitions of $ 1 billion.
