Ripple Labs Inc. Acquires Hidden Road
Ripple Labs Inc. has stepped up its global outreach by acquiring Hidden Road, a prime brokerage platform, through cash, XRP, and the company’s stock offering. SBI Holdings Inc. and their subsidiary, SBI Ripple Asia, announced the agreement, marking a significant move in Ripple’s future in expanding institutional partnerships.
XRP Gains Institutional Traction Amid BIS Cross-Border Payments Push
Ripple’s latest acquisition increases its reach as it takes advantage of the emerging new cross-border payments space. SBI Holdings, led by its Chairman Yoshitaka Kitao and SBI Ripple Asia CEO Masashi Okuyama, highlighted Ripple as a valued strategic partner in the SBI group. The statement also registers the companies’ vision to transform financial services by deploying blockchain technology.
This acquisition will enable Ripple to access institutional-grade foreign exchange and institutionalized digital currencies market. Through its existing client list, Hidden Road will help Ripple expand its foothold in the traditional financial space, away from just crypto-savvy platforms.
Further, the incorporation of XRP as a part of the transaction demonstrates Ripple’s recognition of cryptocurrency’s stability and usefulness. This highlights the function of XRP in high-worth transactions that represent the more extensive goal of Ripple in the mainstream adoption of cryptocurrencies.
Ripple’s purchase has been welcomed by the proponents of XRP as the key sign of the asset’s real integration into the global market. Some influential members of the XRP community, such as WrathofKahneman, noted that SBI’s formal announcement was a major milestone in the Osaka Digital Exchange (ODX).
Significant? I find it interesting that SBI has made a formal announcement about Ripple’s Hidden Road acquisition, too. There are certainly some exciting possibilities given the Osaka Exchange plans. “SBI Holdings, Inc. and SBI Ripple Asia Co., Ltd. are pleased to announce…
The Acquisition’s Implications for Ripple
The acquisition could readily offer Ripple operational opportunities in institutional segments, aligning with the company’s key liquidity priorities, payments, and financial rails.
Ripple Advances as a SWIFT Alternative in Global Payments
Ripple’s expansion goes beyond the acquisitions made in the previous section. As CNF reported, the Bank of International Settlements (BIS) Cross-Border Payments Task Force, Ripple’s XRP, is seen as a contender to traditional processes such as SWIFT. This task force aims to increase the speed and efficiency of international payment systems and make it easier to use blockchain for settlement.
While SWIFT essentially works as a messaging service provider, Ripple provides an end-to-end payment settlement mechanism through its ODL portal. Integrating XRP for its ODL product eliminates the need for a funded wallet via source and destination currency and expedites cross-border payments.
The BIS initiative is a significant milestone for the institutional adoption of blockchain technology. As real-time settlement becomes an international concern, Ripple’s solution provides a viable option for implementation. Despite SWIFT’s attempts to modernize with the SWIFT gpi service, it still remains slow and expensive.
Following this announcement, XRP has seen a surge. XRP is currently trading at $2.16, registering a 1% increase in the last 24 hours. In the last 7 days, XRP has risen by more than 11%.