Wall Street veteran, author, and podcast host Linda P. Jones has emphasized the strategic significance of Ripple’s $1.25 billion acquisition of prime brokerage firm Hidden Road.
In episode 1493 of her podcast, Be Wealthy and Smart, Jones detailed how this move positions Ripple to address longstanding vulnerabilities in the prime brokerage industry—problems exposed in the collapse of Archegos Capital Management in 2021.
Jones explained that a prime broker traditionally provides services like margin financing, clearing and settlement, and complex trade support for hedge funds and institutional clients. These services are typically tied to major banks, a setup that proved to be flawed during the Archegos crisis.
In this podcast, I used the example of prime brokerage weaknesses exposed by the Archegos case and how Hidden Road solves them. The Hidden Road acquisition is a massive move forward for Ripple and the future of the securities industry. #XRP #Ripple #XRPArmy https://t.co/QU0tXEWmsO
— Linda P. Jones (@LindaPJones) April 14, 2025
In that case, banks extended excessive leverage to Archegos without having full visibility into its overall risk exposure. As Jones noted, the lack of transparency and coordination among prime brokers led to more than $10 billion in losses, with institutions like Credit Suisse and Nomura suffering the largest hits.
Ripple’s Plan to Eliminate Structural Risks
The acquisition of Hidden Road is a direct attempt by Ripple to address these structural weaknesses. Jones explained that Hidden Road offers a model for prime brokerage that operates outside of the traditional banking system.
This change could eliminate the risk of multiple uncoordinated exposures, as seen with Archegos, by enabling end-to-end tokenized securities trading using the XRP Ledger (XRPL).
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One of Ripple’s key innovations is leveraging blockchain for real-time trade settlement, with XRP transactions completing in 3–5 seconds—much faster than traditional systems. Jones noted this could boost clearing speed and reliability while reducing exploitation.
Ripple president Monica Long has also weighed in on the acquisition, stating that it aligns with the company’s mission to modernize financial infrastructure and expand institutional access. She highlighted its ability to simplify collateral management across asset classes while maintaining strong risk controls. Ripple also plans to integrate XRPL and RLUSD into the platform to enhance utility.
Ripple’s Strategic Move to Revolutionize Global Securities with XRP
Jones emphasized XRPL’s borderless nature, enabling Ripple to offer global prime brokerage services and reshape securities markets. She noted the financial resilience Ripple could gain through independent infrastructure and a potential rise in XRP’s value, reducing systems currently borne by taxpayers as seen during the 2008 financial crisis.
The acquisition gives Ripple the tools to become a dominant player in the securities investment industry. Through secure, institutional-grade services like Ripple Custody and by addressing the weaknesses exposed by Archegos through this acquisition, Ripple is positioning itself to lead in a more secure, efficient, and transparent financial future.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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