One of the biggest names in the cryptocurrency sector, Ripple recently purchased Prime Brakerage Hidden Road for $250 million, highlighting how decentralization and traditional finances formally align.
Nic Puckrin, Crypto analyst and founder/CEO of Coin Bureau, said the deal shows this new trend, and is positive about Ripple’s blockchain adoption and XRP prices.
After all, transactions scheduled to close by the third quarter of this year are mostly cash-based, with some payable in XRP tokens and Ripple stocks.
Hidden Road, which handled a $3 trillion fund transfer in 2024, was launched in 2018.
Today, that’s a different scenario. “My attitude towards cryptography has changed,” Paklin told crypto.news.
For example, XRP has a market capitalization of approximately $126 billion. Hidden Road also explores using blockchain technology for faster settlements that traditional financial companies have yet to fully embrace.
The acquisition follows a capital search for Hidden Road after initial support from Castle Island Ventures, Coinbase Ventures and Citadel Securities.
For perspective, we asked Paklin what the combined company looks like and what it means for the digital asset industry in the long run.
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Using Hidden Road, does Ripple aim to become a full-stack financial services player?
Paklin: I don’t think Ripple is trying to compete directly with established financial players like JPMorgan Chase, but its ambitions may be even more lofty. On hidden roads, they have gained control over essential financial infrastructure. This is a key layer that causes liquidity and settlement, something that even banks need to use. So it is not the full stack financial services player itself, but a building block essential to all other full stack players.
It is rare to use XRP to raise partial funds for transactions. What precedent is this precedent?
As M&A recovered, we were able to see them trying to chase more projects. Ripple uses XRP as a strategic financial asset, reflecting the high level of trust in this token. Small projects with little tokens will certainly struggle even more if they don’t have that much faith in their longevity.
Which metrics will we look at to see if there is a demand for the post-trade activity migration to XRPL drive?
Retirement transaction fee revenues indicate an increase in network demand. The bridging and settlement volume between XRPL and the major Fiat Stubcoins can be a clear indicator that activity is recovering.
Until recently, TRADFI companies have acquired crypto companies. Why is there a moment when Crypto is on Buyside now?
With the new US administration in power, the regulatory environment for crypto has become much more advantageous. This is exactly what they’ve been waiting for. In addition, more and more crypto players are applying for IPOs in the United States. The market may be declining in the short term, but attitudes towards crypto were changing, and that was the biggest obstacle that has been getting in the way.
Is an increased convergence between Crypto and Tradfi at risk diluting the spirit of decentralization in which Crypto was established? Or is this hybrid future inevitable?
I think the Crypto Ecosystem is becoming more and more divided into two. It’s “Two Code Stories.” Retailers are driven primarily by speculation and short-term outbreaks. But on the institutional aspect, serious market players are coming in, acquiring Bitcoin, launching new products and submitting to IPOs. There is room for decentralization on the retail side, but it is clearly not a place where institutions are involved. However, this is necessary to promote cryptography in the mainstream.
Are we participating in a new stage of competition where companies from cryptographic origins need to play under the same regulations and capital rules as traditional banks?
Yes, it’s just part of Crypto’s evolution. If a company from a cryptocurrency doesn’t play according to the rules, there will be no mainstream recruitment. But if that’s the case, the game is on as Crypto is an innovative technology that can bring significant improvements to Legacy Financial Systems. It must be done within an existing framework.
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