Ripple-Hidden Road Deal: Crypto Prime Brokers Leave Banks Behind

Ripple has agreed to buy Hidden Road, a crypto prime broker, in a deal worth $1.25 billion. It is one of the largest acquisitions in the crypto sector—behind only Kraken’s $1.5 billion purchase of NinjaTrader and slightly ahead of Stripe’s $1.1 billion deal for Bridge. A separate $1.2 billion deal, involving Galaxy Digital’s interest in BitGo, was discussed but never finalised.The Ripple-Hidden Road agreement highlights two key points: the rising dominance of crypto prime brokers and the growing role of stablecoins.While the stablecoin side involves enabling Ripple’s stablecoin to be used as collateral across Hidden Road’s services, the real takeaway is the increasing importance of prime brokers.You may also like: “The Knee on Crypto's Neck is Lifting” - Hidden Road's Higgins on MiCA, Industry's FutureInstitutions Drive Demand for Prime BrokersPrime brokers play a key role in financial markets, including the growing crypto sector, by offering a full range of services such as trading, custody, and lending to major institutions like hedge funds, banks, and private equity firms.Banks are major players in the prime brokerage industry. Their global reach, access to capital, and strong risk systems make them well-suited to support institutional trading needs. However, when it comes to crypto, banks are hesitant to act as prime brokers due to regulatory uncertainty, high market volatility, and concerns around custody and compliance. The lack of clear rules and the risk of exposure to unregulated assets make traditional banks cautious about entering the crypto prime brokerage space. Goldman Sachs is a classic example which re-launched its traditional prime brokerage services in 2020 but has been slow to expand into crypto.As traditional banks have been slow to engage with crypto risks, crypto-focused prime brokers have stepped in to meet growing institutional demand. Hidden Road, founded in 2018 by Marc Asch, offers clearing, prime brokerage, and financing across foreign exchange, digital assets, derivatives, swaps, and fixed-income markets.

Apr 9, 2025 - 14:42

Ripple-Hidden Road Deal: Crypto Prime Brokers Leave Banks Behind

Ripple has agreed to buy Hidden Road, a crypto prime broker, in a deal worth $1.25 billion. It is one of the largest acquisitions in the crypto sector—behind only Kraken’s $1.5 billion purchase of NinjaTrader and slightly ahead of Stripe’s $1.1 billion deal for Bridge. A separate $1.2 billion deal, involving Galaxy Digital’s interest in BitGo, was discussed but never finalised.

The Ripple-Hidden Road agreement highlights two key points: the rising dominance of crypto prime brokers and the growing role of stablecoins.

While the stablecoin side involves enabling Ripple’s stablecoin to be used as collateral across Hidden Road’s services, the real takeaway is the increasing importance of prime brokers.

Institutions Drive Demand for Prime Brokers

Prime brokers play a key role in financial markets, including the growing crypto sector, by offering a full range of services such as trading, custody, and lending to major institutions like hedge funds, banks, and private equity firms.

Banks are major players in the prime brokerage industry. Their global reach, access to capital, and strong risk systems make them well-suited to support institutional trading needs. However, when it comes to crypto, banks are hesitant to act as prime brokers due to regulatory uncertainty, high market volatility, and concerns around custody and compliance. The lack of clear rules and the risk of exposure to unregulated assets make traditional banks cautious about entering the crypto prime brokerage space. Goldman Sachs is a classic example which re-launched its traditional prime brokerage services in 2020 but has been slow to expand into crypto.

As traditional banks have been slow to engage with crypto risks, crypto-focused prime brokers have stepped in to meet growing institutional demand. Hidden Road, founded in 2018 by Marc Asch, offers clearing, prime brokerage, and financing across foreign exchange, digital assets, derivatives, swaps, and fixed-income markets.