Hidden Road, a leading prime brokerage firm, has recently secured a license from FINRA, enabling it to operate as a broker-dealer after its acquisition by Ripple Labs. This strategic move is designed to enhance the firm’s offerings aimed at institutional clientele.
How Will This Benefit the Crypto Sector?
The newly acquired license empowers Hidden Road to provide prime brokerage, clearing, and financing services for fixed-income assets, significantly expanding access for major institutional portfolios. The firm seeks to integrate crypto assets with traditional finance and introduce innovative financing solutions for these products.
Noel Kimmel (CEO): “The new license is a significant step in enhancing our platform and expanding our client base.”
Ripple Labs’ acquisition, valued at around $1.25 billion, is pivotal for the company’s growth trajectory. This transaction stands as Ripple’s largest to date, indirectly supporting XRP Coin by enabling a broader financial infrastructure.
What Changes Are Expected from Ripple’s Acquisition?
Founded in 2018 by Marc Asch, Hidden Road has focused on crypto assets and foreign exchange. The firm raised nearly $50 million in 2022 from notable backers like Citadel Securities and Coinbase Ventures. The partnership with Ripple Labs will introduce initiatives like using the RLUSD stablecoin as collateral and utilizing Ripple’s XRP Ledger for post-trade transactions, enhancing transaction management and settlement efficiency.
Moreover, Hidden Road’s membership in the Fixed Income Clearing Corporation sets the stage for offering fixed-income services. This development aims to deepen institutional access to both crypto and traditional financial markets.
Ripple Labs’ collaboration with Chipper Cash also highlights efforts to streamline cross-border payments in Africa, making financial transactions faster and more cost-effective across the continent.
With the new license and expanded service capabilities, Hidden Road is poised to cater to institutional investors across digital and traditional sectors. The firm is actively implementing strategies aimed at strengthening its competitive position in the evolving marketplace.
