A founder suggests Ripple is pursuing a SoftBank-style acquisition strategy using XRP, while others debate the validity of this comparison.
Ripple's recent moves to control key transaction channels through acquisitions—channeling activity toward XRP and its stablecoin RLUSD—have drawn parallels to Japanese investment giant SoftBank.
Ripple's Strategic Acquisitions
- Hidden Road Purchase: On April 8, Ripple acquired Hidden Road for $1.25 billion, enabling RLUSD usage as collateral in Hidden Road’s prime brokerage services. The firm will also migrate post-trade operations to the XRP Ledger.
- Earlier Moves: This follows Ripple's 2023 acquisition of custody firm Metaco and 2024’s purchase of Standard Custody, building a financial infrastructure stack.
The SoftBank Parallel
Omni Network co-founder Austin King describes Ripple’s strategy as "SoftBank-style," citing:
- Ecosystem Synergies: Like SoftBank’s investments in Yahoo and Alibaba created network effects, Ripple uses XRP to connect financial services.
- Capital Leverage: Both companies deploy large reserves (SoftBank’s $100B Vision Fund vs. Ripple’s ~$110B XRP holdings) to accelerate growth.
👉 How XRP’s utility compares to traditional assets
Skepticism About the Comparison
Critics argue Ripple’s approach is more focused:
- Sid Powell (Maple CEO): "SoftBank is a conglomerate; Ripple targets payment/blockchain adjacencies."
- Casper Johansen (Spartan Group): SoftBank’s success relied on turnarounds and exits—a different model than Ripple’s product-driven acquisitions.
The Bigger Crypto M&A Trend
Ripple joins U.S. crypto firms in aggressive expansion:
- Kraken bought NinjaTrader ($1.5B).
- Coinbase acquired Deribit ($2.9B).
Regulatory shifts have enabled this surge after years of SEC battles. Ripple’s recent settlement with the SEC (May 8) may further ease constraints.
FAQ: Ripple’s Next Moves
Q: Will Ripple keep acquiring companies?
A: CEO Brad Garlinghouse confirmed ongoing interest, with rumors of a $4–5B bid for Circle (rejected).
Q: What’s the focus for RLUSD?
A: Competing with USDC/PayPal USD, but U.S. stablecoin regulation remains unresolved after the GENIUS bill failed (May 8).
Q: Could Ripple enter consumer payments?
A: Austin King predicts a POS company acquisition to expand beyond backend services.
👉 Why institutional adoption hinges on stablecoins
Challenges Ahead
- XRP Integration: Limited institutional uptake due to volatility.
- RLUSD Competition: Needs traction against entrenched rivals.
With 300+ institutional clients via Hidden Road, Ripple’s ecosystem is scaling—but execution will determine if it mirrors SoftBank’s success.