Ripple’s recent acquisition of Hidden Road for $1.25 billion has sparked a compelling comparison: is the company executing a SoftBank-style investment strategy powered by XRP and its stablecoin RLUSD? While some industry insiders see clear parallels, others argue the analogy oversimplifies Ripple’s focused, product-driven mission.
At the heart of the debate is Ripple’s aggressive acquisition strategy—buying key financial infrastructure to embed its native assets, XRP and RLUSD, into core institutional workflows. This approach echoes SoftBank’s empire-building through bold capital deployment, though the sectors and end goals differ significantly.
The SoftBank Parallel: Capital as a Competitive Weapon
SoftBank rose to global prominence through high-stakes, visionary investments—most notably its early bet on Alibaba, which returned over 3,000x. The firm used those gains to fund further acquisitions, creating a self-reinforcing ecosystem across telecom (Sprint), semiconductors (ARM), and tech startups via its $100 billion Vision Fund.
Austin King, co-founder of Omni Network and former CEO of Strata Labs (acquired by Ripple in 2019), sees a similar playbook in motion. “Ripple isn’t building everything in-house like Google or Meta,” he explains. “Instead, it’s using capital—especially XRP—as fuel to acquire infrastructure and integrate it into a unified financial stack. That’s a softbank-style strategy, but powered by crypto.”
👉 Discover how blockchain leaders are reshaping finance with strategic asset integration.
The logic is clear: Ripple acquires companies that control critical financial rails—custody, brokerage, clearing—and then integrates XRP and RLUSD into their operations. The result? A growing network effect where each acquisition increases demand for Ripple’s native assets.
Building a Financial Infrastructure Stack
Unlike SoftBank’s broad-sector approach, Ripple is laser-focused on financial services. Its acquisitions form a cohesive stack:
- Metaco (2023): A leading digital asset custodian, providing secure storage for institutional clients.
- Standard Custody (2024): Expanded Ripple’s custody footprint with additional regulatory licenses and client access.
- Hidden Road (2025): A major prime broker serving over 300 institutional clients, clearing $3 trillion annually.
With Hidden Road, Ripple gains direct access to hedge funds, market makers, and trading desks—clients who now use RLUSD as collateral and will migrate post-trade operations to the XRP Ledger.
Sid Powell, co-founder and CEO of Maple Finance, notes: “Through full-stack infrastructure, Ripple can position XRP as the native bridge asset between networks, custodians, and tokenized assets. Meanwhile, RLUSD offers a regulated, dollar-pegged unit of account institutions trust.”
This integration creates what Austin calls a “token-driven flywheel”: Ripple uses its balance sheet (XRP reserves and cash) to acquire infrastructure; that infrastructure drives usage of XRP and RLUSD; increased usage boosts asset value and liquidity, enabling further acquisitions.
Does the SoftBank Comparison Hold?
Not everyone agrees with the analogy. Casper Johansen, co-founder of Spartan Group, calls it “a bit of a stretch.” He argues that SoftBank’s success came from turning around operational businesses and exiting high-growth equity stakes—strategies distinct from Ripple’s product integration model.
“SoftBank operates like a conglomerate with diversified bets,” Johansen says. “Ripple is building a vertically integrated financial network. It’s not about portfolio diversification—it’s about control over the payment rail.”
Sid Powell adds: “Ripple’s moves are deeply tied to its blockchain and payment mission. This isn’t speculative capital deployment; it’s strategic infrastructure assembly.”
Still, the core similarity remains: both companies use massive capital reserves to shape entire ecosystems. While SoftBank leveraged equity returns, Ripple is leveraging its 45.6 billion XRP holdings (valued at ~$11 billion) and another 37.1 billion in escrow (~$89.8 billion at current prices).
The Broader Crypto M&A Wave
Ripple isn’t alone. The crypto industry is entering a consolidation phase driven by maturing regulation and institutional demand.
- Kraken acquired NinjaTrader for $1.5 billion.
- Coinbase is buying Deribit for $2.9 billion.
These deals follow a shift in the U.S. regulatory landscape. After years of enforcement actions and banking restrictions—especially under SEC Chair Gary Gensler—industry leaders report improving sentiment.
Brad Garlinghouse, Ripple’s CEO, recently stated he expects the SEC to take a “very constructive and positive” stance moving forward. This optimism followed Ripple’s landmark $125 million settlement with the SEC in May 2025, ending a four-year legal battle over XRP’s classification.
👉 See how regulatory clarity is unlocking new opportunities in digital finance.
What’s Next? Stablecoins and Consumer Payments
With its legal hurdles cleared, Ripple is eyeing bigger plays.
Austin predicts: “I wouldn’t be surprised if Ripple acquires a major point-of-sale (POS) company in the next 1–2 years, extending its reach from back-end finance to consumer payments.”
Ripple’s interest in stablecoins is also intensifying. Bloomberg reported in April 2025 that Ripple offered $4–5 billion for Circle—the issuer of USDC—but was rebuffed as the bid was deemed too low.
This signals Ripple’s willingness to absorb competitors to accelerate RLUSD adoption. However, challenges remain.
Hadley Stern, Chief Business Officer at Marinade, cautions: “XRP’s real-world integration is still limited. Institutions hesitate to use volatile crypto for core settlement. RLUSD has more potential but faces stiff competition from USDC, PayPal USD, and others.”
Regulatory uncertainty also lingers. The GENIUS Act—a bipartisan bill aiming to establish a federal framework for stablecoins—failed a procedural vote in the Senate on May 8, 2025.
👉 Learn how the next wave of stablecoin innovation could redefine global payments.
Frequently Asked Questions
Q: Is Ripple really like SoftBank?
A: While both use capital aggressively to build ecosystems, Ripple is focused on financial infrastructure and product integration, whereas SoftBank takes broad equity stakes across industries.
Q: How does Ripple fund its acquisitions?
A: Ripple uses a mix of cash and its substantial XRP holdings—45.6 billion XRP in circulation and 37.1 billion in escrow—as strategic capital.
Q: What role does XRP play in these acquisitions?
A: XRP serves as both a reserve asset and a native bridge currency within the XRP Ledger, enabling fast, low-cost settlements across acquired platforms.
Q: Why did the GENIUS Act fail?
A: The bill failed due to partisan disagreements over banking regulations and state vs. federal oversight of stablecoin issuance.
Q: Can RLUSD compete with USDC or USDT?
A: RLUSD has strong institutional backing through Ripple’s network, but it must overcome brand recognition and liquidity gaps to challenge established players.
Q: What’s next for Ripple after the SEC settlement?
A: With regulatory clarity, Ripple is likely to pursue more acquisitions—especially in payments, stablecoins, and cross-border infrastructure.
Core Keywords: Ripple, XRP, RLUSD, Hidden Road, acquisition strategy, stablecoin, financial infrastructure, crypto M&A