Ripple has officially acquired Hidden Road for $1.25 billion, marking its largest deal to date. Just one week later, Hidden Road secured a broker-dealer license from the Financial Industry Regulatory Authority (FINRA). Noel Kimmel, the company’s president, confirmed the regulatory milestone during a Bloomberg interview.

FINRA Approval Opens Doors for Institutional Growth

With the FINRA license in hand, Hidden Road can now offer prime brokerage services to a wider base of institutional clients. Kimmel stated that the approval allows the firm to deliver transparent transactions, financing services, and access to fixed-income assets. He emphasized that Hidden Road now aims to become a full-service, non-bank prime broker that supports both traditional and digital assets.

Related article: Ripple v. SEC Appeal Officially Paused as Settlement Nears

Following the acquisition, Hidden Road plans to shift its post-trade operations onto the XRP Ledger (XRPL). Since XRP serves as the native token of XRPL, the firm could use it to power post-trade settlements. Moreover, the company will adopt Ripple USD (RLUSD) as a collateral asset for its prime brokerage services.

Leverage Ripple’s Resources for Larger Deals

Kimmel admitted that before Ripple’s acquisition, capital limitations prevented Hidden Road from scaling effectively. However, with Ripple’s backing, the firm now has a stronger balance sheet and can pursue larger financial transactions.

Industry experts have already begun weighing in on Hidden Road’s regulatory win. Jake Claver, Managing Director at the Digital Ascension Group, described the license as a “huge deal.” He explained that the license enables institutional players—like hedge funds and market-makers—to engage in digital asset trading, including XRP, through a compliant U.S. entity.

Related article: XRP’s Relevance Under Fire as RLUSD Gains Momentum: Is Autobridging Enough to Keep It Afloat?

Claver noted that financial institutions can now access financing, clearing, and custody services through Hidden Road without needing to build internal systems. This all-in-one solution simplifies institutional engagement with digital assets and streamlines access to XRP-related services.

Hidden Road’s new FINRA license, supported by Ripple’s acquisition, marks a turning point in institutional access to XRP and digital asset brokerage services.