Pundits Share How XRP Could Benefit from the Ripple Acquisition of Hidden Road
XRP community commentators have noted how XRP could also benefit from Ripple’s recent acquisition of Hidden Road.
Ripple Acquires Hidden Road, But Concerns Emerge
For context, Ripple recently announced the acquisition of prime brokerage firm Hidden Road for $1.25 billion. The development, which builds on Ripple’s growth strategy, triggered discussions within crypto circles, especially among XRP supporters.
While much of the spotlight has focused on Ripple’s stablecoin RLUSD being utilized as collateral in institutional finance, several XRP investors have questioned how XRP fits into the picture.
Addressing these concerns, WrathofKahneman (WOK), a well-known commentator in the XRP community, recently sought to clarify XRP’s role in this strategy.
Hidden Road, a multi-asset prime brokerage handling over $3 trillion in annual trading volume, serves more than 300 institutional clients worldwide. With the recent purchase, Ripple looks to expand into institutional finance, becoming the only crypto firm to operate a global multi-asset brokerage platform.
Notably, the acquisition also shows Ripple’s focus on developing reliable financial infrastructure and extending its influence in capital markets, moving beyond retail remittances.
XRP Not Being Sidelined
However, this move raised concerns among XRP holders when RLUSD was identified as the primary asset for collateral in Hidden Road’s offerings. Nonetheless, according to WOK, this development does not pose a threat to XRP’s utility but it’s rather an expansion of its reach.
Predictably, people want to know, “What about #XRP?” given the Hidden Road news. The mention of #RLUSD collateral has unnerved some. This time, I think, is different. Here’s why:
▶️Both Brad and David talked about plugging the #XRPL into this financial infrastructure of deep… — WrathofKahneman (@WKahneman) April 8, 2025
He explained that Ripple executives Brad Garlinghouse and David Schwartz have both confirmed integrating the XRP Ledger (XRPL) into global capital markets, leading to a new phase for XRP’s utility.
WOK noted that Ripple’s early ambitions in retail remittances didn’t scale as expected, and while enterprise payments continue to grow, the definition of “payments” has shifted.
Instead of focusing on individual transfers, Ripple is now tapping into institutional liquidity and treasury flows, an area where XRP has potential to play a major role. He suggested that XRP’s involvement in institutional settlement, clearing, and liquidity management could embed the asset into far more lucrative markets than retail.
RLUSD and XRP Complementing Each Other
Notably, as a stable, regulated asset, RLUSD is a suitable collateral for institutions with low-risk tolerances. However, WOK stressed that XRP remains essential for facilitating liquidity movement, asset bridging, and cross-border currency flow.
He argued that XRP’s design for easy movement across financial “walled gardens” makes it a vital component of this new infrastructure, even if it’s no longer the most visible asset in the spotlight.
In support of this multi-asset future, another XRP community member pointed out that not all institutions want to hold volatile assets like XRP on their balance sheets.
However, XRP can still function effectively as a bridge between various stablecoins and liquidity pools, reinforcing the idea that RLUSD and XRP can coexist and even complement one another.
WOK agreed with this, stating that the XRPL is growing into a platform for comprehensive financial infrastructure, which naturally requires a diversity of assets. In this environment, XRP doesn’t lose relevance, it gains new utility.
Yeah, if people want the XRPL to be financial plumbing, we have to get used to lots of different assets on the ledger. XRP benefits from it. — WrathofKahneman (@WKahneman) April 9, 2025
Increased Demand for XRP?
In a separate commentary, financial consultant Jake Claver also confirmed that Ripple’s acquisition of Hidden Road would benefit XRP immensely. According to him, if only a portion of Hidden Road’s $10 billion daily volume flows through the XRPL, XRP could see massive demand.
What happens when just a fraction of that $10B daily volume starts settling through XRP? Demand skyrockets. These aren’t retail traders—these are hedge funds and market makers who need XRP to power their operations. And they’ll be buying lots of it. — Jake Claver, QFOP (@beyond_broke) April 8, 2025
Claver suggested that the Hidden Road development sets up new utilities, with one of them being XRP’s use for cross-border payments. This commentary essentially addresses concerns that Ripple could be looking to sideline XRP, especially with its use of RLUSD.
Similar concerns emerged when RLUSD launched, with some questioning if the stablecoin could completely replace XRP in the Ripple Payments product.