Bengaluru — Cryptocurrency agency Ripple mentioned on Tuesday it will purchase multi-asset prime dealer Hidden Street for $1.25bn, making it one of many largest acquisitions by the crypto firm.
That is the second billion-dollar-plus deal involving a crypto firm this yr, as digital belongings equivalent to bitcoin acquire extra prominence underneath US President Donald Trump, who has promised to be the “crypto president”.
“The US market is successfully open for the primary time as a result of regulatory overhang of the previous SEC [Securities and Exchange Commission] coming to an finish, and the market is maturing to deal with the wants of conventional finance,” Ripple CEO Brad Garlinghouse mentioned.
Prime brokers assist in the day-to-day operations of clearing, securities lending and leveraged commerce execution, amongst different companies.
Massive hedge funds and institutional buyers normally avail these companies.
Hidden Street clears $3-trillion yearly throughout markets with greater than 300 institutional purchasers. The deal will enable Hidden Street to develop exponentially utilizing Ripple’s stability sheet and turn into the biggest nonbank prime dealer globally, the crypto firm mentioned.
Ripple may even turn into the one crypto firm to personal and function a world multi-asset prime dealer as a result of deal, which is anticipated to shut within the coming months, it mentioned.
The acquisition additionally enhances Ripple USD’s (RLUSD) utility as Hidden Street makes use of the stablecoin as collateral throughout its prime brokerage merchandise.
Ripple launched RLUSD, a stablecoin pegged to the US greenback, in 2024, because it sought to disrupt the market dominated by tether and USD coin.
Reuters
