Ripple now earns prime brokerage fees after $1.25 billion Hidden Road deal

Business Growth and Expansion

Ripple first announced the Hidden Road acquisition on April 8, 2025, and the deal closed in October 2025. With the purchase, Ripple became the first crypto platform to own and operate a global multi-asset prime brokerage. Ripple Prime covers foreign exchange, derivatives, fixed income, equities, and digital assets.

Revenue Streams and Pricing

Ripple Prime is financing leveraged equity products through total return swaps, which earn a fee of 8% on top of the Overnight Bank Funding Rate. This pricing arrangement works out to about 8% per annum. The market for these products is significant, with 593 leveraged ETFs in the US holding over $256 billion in assets under management.

Regulatory Compliance and Partnerships

Ripple Prime holds over $1 billion in regulatory net capital as of late 2026. The company has also announced a partnership with Brevan Howard for multi-asset brokerage. Ripple is using its stablecoin, RLUSD, as collateral within the business and plans to migrate certain post-trade activities to the XRP Ledger.

Market Impact and Outlook

The acquisition marks a significant expansion into the traditional finance industry for Ripple. With its new prime brokerage arm, Ripple is expected to grow its business significantly and capture efficiency gains. However, the details of the post-trade activities migration to the XRP Ledger remain a plan, not a finished migration.