- Ripple’s $1.25B acquisition of Hidden Road sets a new standard in crypto prime brokerage ownership.
- The XRP ETF opened strong, ranking in the top 5% of new ETF debuts by volume.
- BlackRock’s recent BTC transfer to Coinbase signals shifting ETF fund flows.
Ripple has acquired prime brokerage firm Hidden Road for $1.25 billion, becoming the first crypto company to own and operate a global multi-asset prime broker. The acquisition strengthens Ripple’s institutional presence and positions it as a direct competitor to traditional prime brokers in global finance.
Hidden Road is known for serving a broad institutional client base that includes hedge funds and algorithmic trading firms. Ripple has been a long-standing client of Hidden Road, making the transition smoother. The firm plans to scale its services significantly by integrating Ripple’s technology and financial backing.
Support for RLUSD Collateral Use
The acquisition is expected to play a key role in Ripple’s stablecoin ecosystem. Ripple’s RLUSD stablecoin will be used as collateral across Hidden Road’s institutional offerings. This step allows Ripple to enhance its utility in multi-asset trading environments and improve liquidity for large clients.
Brad Garlinghouse, Ripple’s CEO, stated on social media that Hidden Road’s expanded access to Ripple’s balance sheet would support its growth. He emphasized that the goal is to make Hidden Road the largest non-bank prime broker worldwide, capable of handling rising demand across the digital asset space.
XRP ETF Launches With Strong Trading Volume
In another key development, the Teucrium 2x Long Daily XRP ETF (XXRP) began trading in the U.S. on April 8. The ETF recorded a trading volume of $5 million on its first day, which ranked it among the top 5 percent of ETF launches. Bloomberg’s ETF analyst Eric Balchunas described the volume as “very respectable” in a post on the X platform.
The XXRP fund provides 2x leveraged exposure to XRP using swaps. The ETF is aimed at traders seeking short-term exposure to XRP volatility. It significantly outperformed a recently launched Solana-based leveraged ETF in terms of trading activity.
Separately, asset manager BlackRock moved 3,296 BTC worth $254 million to Coinbase on April 9. The transaction sparked concerns about potential asset liquidation. While it is not confirmed as a divestment, the move coincides with continued outflows from BlackRock’s Bitcoin ETF, IBIT.
