Ripple has announced a new acquisition after it finally broke free from its SEC court case.
XRPUSD – Daily Chart
The price of XRP has been trying to hold key support at the $2 level and the price of the coin now risks further losses below that level. A move towards $1 is possible for the token if the market selling continues.
Ripple, the leading provider of digital asset infrastructure for financial institutions, announced the $1.25 billion deal for Hidden Road, marking one of the largest deals in the digital asset sector. Ripple will become the first crypto company to own and operate a global, multi-asset prime broker.
Hidden Road has been one of the fastest-growing prime brokers in the world, providing services in FX and digital asset swaps.
“We are at an inflection point for the next phase of digital asset adoption – the US market is effectively open for the first time due to the regulatory overhang of the former SEC coming to an end, and the market is maturing to address the needs of traditional finance,” said Brad Garlinghouse, CEO of Ripple. “With these tailwinds, we are continuing to pursue opportunities to massively transform the space, leveraging our unique position and strengths of XRP to accelerate our business and enhance our current solutions and technology”.
The move by Ripple shows that the company is on track to begin a new phase of its growth after management was hamstrung by the SEC lawsuit. The US regulator had accused the company of selling its token in a public offering without proper marketing.
The door is now open for Ripple to make strategic moves and the coin could benefit once the current market selling finds a price bottom. Bitcoin was back below the $77k level ahead of Wednesday’s session, adding pressure to the crypto sector.
