Ripple Acquires Hidden Road: New Era for Crypto-OTC Swaps Begins!

Ripple Acquires Hidden Road: New Era for Crypto-OTC Swaps Begins!

Ripple has significantly increased its influence in the cryptocurrency market by acquiring prime broker Hidden Road. Reportedly acquired for $1.25 billion, the acquisition allows Ripple to become one of the first crypto companies to offer a global multi-asset prime broker. Hidden Road, which launched crypto swaps for US institutional investors on May 28, 2025, is offering a new service that includes cash-settled over-the-counter (OTC) swaps for multiple crypto assets. This product is offered by its subsidiary Hidden Road Partners, which is regulated by the UK Financial Conduct Authority (FCA). This development could significantly contribute to Ripple taking a central role in institutional crypto trading.

Michael Higgins, the CEO of Hidden Road, explains that OTC swaps have been difficult to access for US institutions, despite accounting for a significant portion of digital asset trading volume. The acquisition comes at a time when institutional OTC volume in the crypto market has increased 106% over the past year, according to Finery Markets. Given these developments, Ripple could benefit from increasing demand for XRP. XRP is a crypto asset used for billions of dollars worth of cross-border payments, offering the ability to process transactions in just 3 to 5 seconds.

Regulatory progress and future prospects

Following the acquisition, Hidden Road received a broker-dealer license from FINRA and is one of the first companies to receive a license under MiCA regulation in Europe, which came into effect on December 30, 2024. These regulatory advancements could not only encourage trading in XRP, but also increase visibility and demand for the crypto asset since a majority of XRP trading occurs through the OTC market. Institutional investors purchasing XRP through this market ensure that trading volume is not recorded in public data. However, this settlement could include a portion of the over $3 trillion in annual volume that Hidden Road moves.

Despite the high usability of XRP, the price remains below expectations. Analysts estimate the likelihood of an XRP ETF being approved this year at 85%. Such an ETF could attract institutional capital and increase investor confidence. Growing institutional pipelines and the prospect of ETF access could see the gap between XRP's price and usage narrow. In the current market environment, XRP is increasingly viewed as a financial infrastructure, unlike Bitcoin, which is often viewed as digital gold.

In summary, Ripple's acquisition of Hidden Road not only represents a strategic expansion in crypto services, but could also lay the foundation for sustained growth in XRP demand and a positive shift in the regulatory status of cryptocurrencies. The true value of XRP, it is believed, could already be locked in major financial institutions such as JP Morgan and BlackRock, leaving the further development of the digital currency of great interest.

For more information please read the reports on Cointelegraph and News Crypto.