Japanese financial services giant SBI Holdings has officially endorsed Ripple’s high-profile acquisition of prime brokerage firm Hidden Road. The announcement came shortly after Ripple confirmed it had completed the $1.25 billion deal, which positions it as the first cryptocurrency company to own and operate a multi-asset prime broker.
This acquisition is already creating waves across traditional finance and digital asset landscapes. In its statement, SBI not only acknowledged the acquisition but also detailed the payment structure and broader implications for Ripple’s ecosystem—especially XRP and its upcoming stablecoin RLUSD.
SBI Endorses Ripple’s $1.25 Billion Strategic Deal
SBI Holdings emphasized that Ripple used a multi-channel payment structure to seal the Hidden Road deal. The $1.25 billion payment included a blend of XRP, Ripple’s treasury stock, and cash. According to SBI, this strategic payment method demonstrates Ripple’s resourceful approach to acquisitions and its intent to scale rapidly.
SBI further revealed Ripple’s immediate plan to inject billions into Hidden Road’s infrastructure. The infusion will support the firm’s core operations in clearing, finance, and prime brokerage services. SBI explained that this capital injection is necessary to meet growing institutional demand and ensure Hidden Road remains competitive on a global scale.
RLUSD Steps into the Spotlight
Interestingly, the press release also introduced Ripple’s enterprise-grade stablecoin, RLUSD, as a pivotal part of this acquisition strategy. Designed as a USD-pegged digital currency, RLUSD will reportedly facilitate cross-margining between digital assets and traditional financial instruments.
This functionality is not just innovative; it’s unprecedented. Ripple aims to establish RLUSD as the first stablecoin to efficiently enable margin and risk management across multiple asset classes. This move will further cement RLUSD’s utility within financial institutions seeking seamless liquidity and collateral movement.
Hidden Road to Shift Post-Trades to XRP Ledger
SBI also confirmed that Hidden Road plans to migrate its post-trade settlement operations to the XRP Ledger (XRPL). Ripple’s blockchain will thus serve as the backbone for a portion of Hidden Road’s future transactions.
Currently, Hidden Road clears approximately $3 trillion annually for over 300 major financial institutions using traditional fiat systems. However, Ripple CEO Brad Garlinghouse noted that the company will begin settling part of that massive volume via XRPL, leveraging XRP to reduce settlement costs and transaction times drastically.
By moving post-trade activity to the XRPL, Hidden Road aligns itself with Ripple’s long-term vision of a decentralized, high-speed financial system that caters to global institutions.
Related article: From Courtroom to Wall Street: How XRP Fought Its Way to Mainstream Finance
SBI Reaffirms Longstanding Partnership with Ripple
SBI’s support signals more than just approval—it’s a reaffirmation of its ongoing strategic alliance with Ripple. Since 2016, the two companies have jointly operated SBI Ripple Asia, a firm focused on using XRP for cross-border remittances across Asia.
Despite Ripple’s lengthy legal battle with the U.S. Securities and Exchange Commission (SEC), SBI never wavered in its support. Now that the case appears to be winding down, SBI predicts Ripple will enter a new phase of exponential growth.
A Bold New Era for Ripple and Its Ecosystem
Ripple’s acquisition of Hidden Road isn’t just a milestone; it’s a masterstroke that deepens its grip on institutional finance. With SBI’s backing, Ripple gains credibility and the capital and collaborative strength needed to expand XRPL’s utility and boost the adoption of both XRP and RLUSD.
As traditional and decentralized finance increasingly converge, Ripple’s bold moves could define the future of prime brokerage and stablecoin integration. And with partners like SBI in its corner, the company seems well-positioned to lead that charge.
