Japanese financial services company SBI Holdings is drawing public attention to the acquisition of Ripple, the fast-growing prime broker Hidden Road.
This comes days after Ripple announced it had spent $1.25 billion to acquire Hidden Road. Ripple portrayed the acquisition as one of the biggest in the digital asset industry. After the acquisition, Ripple became the first crypto company to own and operate a multi-asset prime broker.
The deal sent a shockwave across the financial industry, highlighting the milestones by SBI Holdings and its subsidiary SBI Ripple Asia.
SBI highlights Ripple's latest acquisition
SBI highlighted that Ripple paid $1.25 billion for the acquisition using a multifaceted payment method, including XRP, Treasury stocks and cash. An announcement from SBI Holdings highlighted plans to inject Ripple's billions of dollars into the Hidden Road business.
Specifically, Ripple injects funds into Hidden Road liquidation, Prime brokerages and financial platforms. The SBI showed that the rationale behind this injection is to meet capital needs on a rapid scale.
Interestingly, the press release mentioned the role of Ripple's USD page Stablecoin (RLUSD) in the acquisition.
According to the announcement, RLUSD will be the first Stablecoin to promote efficient cross-merging between crypto and traditional assets. This feature enhances the role of RLUSD as a proper enterprise grade USD backed Stablecoin.
Hidden Road for using XRPL is used for post trading
Additionally, SBI Holdings noted that Hidden Road will migrate its post-trade activities into the XRP ledger and approve XRPL as the leading blockchain for decentralized financial and financial institutions.
Last week, Ripple CEO Brad Garlinghouse confirmed that Hidden Road is clearing roughly $3 trillion per year at over 300 global financial institutions. Prime brokers achieved feats through Fiat Rail despite slower transactions and experiencing high fees.
However, after Ripple acquires Hidden Road, Garlinghouse expects to clear some of its $3 trillion flow using XRPL and native token XRP.
Meanwhile, SBI's comments show how Japanese financial services companies view the acquisition. The acquisition is a strategic move that could benefit Ripple and its partners, including SBI Holdings.
In particular, in a press release commenting on the acquisition of Hidden Road, SBI Holdings called Ripple its “significant partner.” In 2016, we first partnered with Ripple to create SBI Ripple Asia. SBIRipple Asia utilizes XRP for cross-border settlements.
Interestingly, SBI Holdings stayed at Ripple despite fighting a multi-year lawsuit with the SEC. With the lawsuit approaching conclusion, SBI hopes Ripple will grow significantly.
