Ripple is rapidly assembling a financial infrastructure stack that mirrors SoftBank’s aggressive acquisition strategy. The $1.25-billion Acquisition of Hidden Road on April 8 allows Ripple to leverage RLUSD as collateral in prime brokerage products. This deal follows Ripple’s acquisition of Metaco in 2023 and Standard Custody in 2024, positioning XRP and RLUSD as integral components in the evolving financial landscape.
Ripple’s Ecosystem Strategy: Building a Token-Fueled Flywheel
Ripple’s approach to acquisitions is reminiscent of how SoftBank built its empire through strategic investments, joint ventures, and buyouts. However, Ripple’s focus is narrower, concentrating on financial services and blockchain infrastructure rather than sprawling into multiple sectors. The acquisition of Hidden Road brings 300 institutional clients clearing $3 trillion annually, giving Ripple a robust foundation to embed XRP and RLUSD in post-trade operations.
Can Ripple Replicate SoftBank’s Success?
Despite comparisons, some industry leaders argue Ripple’s approach is more targeted than SoftBank’s expansive investment model. “SoftBank operates more as a conglomerate or holding company, taking broader investment positions across industries,” said Sid Powell, CEO of Maple. “Ripple, however, is aligning its acquisitions to its core mission of payment infrastructure.”
Ripple CEO Brad Garlinghouse recently hinted that further acquisitions are on the horizon, potentially expanding into consumer-facing payment solutions. With regulatory clarity emerging in the US, Ripple’s acquisition spree may just be getting started, especially as it eyes stablecoin competitors and point-of-sale companies to further entrench RLUSD in mainstream finance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: XRP Price Jumps 8% as Ripple Whales Move $175 Million – Will a Bullish Breakout Follow?
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
