Ripple’s Big Deal: Hidden Road Gets Broker-Dealer Approval!

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In an announcement that surely sent ripples through the financial world (pardon the pun!), Ripple Labs’ prized possession, Hidden Road, has revealed that its subsidiary, Hidden Road Partners CIV US LLC, has been graciously granted approval by the Financial Industry Regulatory Authority (FINRA) to operate as a FINRA-member broker-dealer. It’s almost as if they’ve received the royal seal of approval—one can only wonder what took them so long! 🙄

Thanks to this shiny new badge of honor, Hidden Road is now poised to elevate its recently launched fixed income prime brokerage platform. This platform, which currently offers Fixed Income Repo and Global Funding services (how utterly riveting), is now in a far better position to dazzle institutional clients with even more services. 🎉

New Broker-Dealer Status Amid Ripple’s Grand Acquisition

The newfound broker-dealer status gives Hidden Road the esteemed privilege of offering an even wider range of regulatory-compliant services, such as prime brokerage, clearing, and financing for those ever-so-exciting fixed income assets. Because who doesn’t love fixed income, right? 😆

Noel Kimmel, the President at Hidden Road (because someone must lead the charge, apparently), was positively giddy about the whole affair, stating, “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.” One can only imagine how *delightful* it must be to achieve such a monumental milestone. 🎩

With this grand development, Hidden Road is ready to offer its technology-driven services to a whole host of institutional clients—presumably those who truly appreciate the fine art of financial services. Kimmel, ever the optimist, expressed his enthusiasm for continuing to provide “superior execution.” We’re all on the edge of our seats, I’m sure! 😏

Of course, this thrilling news arrives against the backdrop of Ripple’s grand plan to acquire Hidden Road for a cool $1.25 billion, which was, as one would expect, disclosed on April 8, 2025. The acquisition, still pending regulatory approval (because what’s a deal without a little suspense?), is expected to close in the coming months. Fingers crossed, eh? 🤞

US Market Ready For Digital Asset Adoption (Finally!)

With Ripple’s endless financial resources (oh, how lucky they are!), Hidden Road is gearing up for a truly impressive expansion of its service capacity. The goal? To become one of the largest non-bank prime brokers globally—because why aim for small victories when you can go big, right? 🌍

Brad Garlinghouse, Ripple’s CEO (and the man with a grand vision), shared his thoughts on the rapidly changing landscape for digital asset adoption in the US. According to him, “We are at an inflection point for the next phase of digital asset adoption – the US market is effectively open for the first time due to the regulatory overhang of the former SEC coming to an end.” Sounds like the beginning of something… interesting, to say the least. 😎

The acquisition also boosts the utility of Ripple USD (RLUSD)—an enterprise-grade USD-backed stablecoin (because who wouldn’t want a stablecoin that’s enterprise-grade?). This stablecoin will now be used as collateral across Hidden Road’s prime brokerage products. Oh, the wonders of the digital age. 💸

And in an attempt to streamline operations (because that’s always a good idea), Hidden Road plans to move its post-trade activities to the XRP Ledger (XRPL), reducing costs along the way. Efficiency at its finest, folks. 📉

Ripple, ever the visionary, also has plans to optimize costs and liquidity within its cross-border payments solution, Ripple Payments, while providing top-tier custody services for Hidden Road’s clientele who need bank-grade digital asset custody. All in a day’s work for this dynamic duo. 💼

Marc Asch, the Founder and CEO of Hidden Road (because one Marc Asch isn’t enough), commented on the transformative potential of the deal, stating, “With new resources, licenses, and added risk capital, this deal will unlock significant growth in Hidden Road’s business.” Because, of course, what better way to unlock growth than with resources, licenses, and risk capital? 😏

Asch was quick to assure everyone that the partnership with Ripple would preserve the trust and reliability that institutional clients have come to expect—except now, it’s all designed for a digital future. Oh, how the times are changing! ⏳

At the time of writing, XRP trades at $2.0570, down over 10% on the monthly time frame. But don’t worry, I’m sure it’ll bounce back, as it always does… right? 🤷‍♂️

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2025-04-18 21:59