Key Notes
- Hidden Road has been approved to operate as a broker-dealer.
- The Ripple Labs $1.25 billion acquisition is set to boost the firm’s growth and reach.
- New services target both digital and traditional asset clients.
Hidden Road, a prime brokerage firm now owned by Ripple Labs, has been approved to operate as a broker-dealer. The license, granted by the Financial Industry Regulatory Authority, will allow the company to work more closely with institutional investors.
New License Opens More Doors for Hidden Road
According to a report by Bloomberg, the approval allows Hidden Road to expand its services to larger clients. These services include prime brokerage, clearing, and financing for fixed-income assets.
According to the company’s President, Noel Kimmel, this is an important step in building their platform. He explained that the license now lets them work with a wider range of customers than before.
It is worth noting that the move follows Hidden Road’s effort to become a complete brokerage firm that does not rely on a traditional bank model. According to the report, adding this license will help the firm serve clients who want access to both digital assets and traditional markets.
Hidden Road was started in 2018 by Marc Asch, a former SAC Capital and Point72 employee. Since its launch, the firm has focused mainly on digital assets and foreign exchange.
In 2022, it raised $50 million in a funding round that included big names like Citadel Securities, Coinbase Ventures, and Wintermute. This helped put the firm on the radar of institutions looking for stable partners in the digital space.
Ripple Acquisition Gives Hidden Road More Reach
Ripple Labs acquired Hidden Road for $1.25 billion earl. This marks Ripple’s largest purchase so far. Kimmel said the deal will allow Hidden Road to grow faster, thanks to Ripple’s larger balance sheet. Before the deal, the company faced limits because of its smaller size.
As part of the new plans, Hidden Road will use Ripple’s RLUSD stablecoin as collateral for its services. It also plans to move its post-trade operations to Ripple’s XRP Ledger. These changes will support its goal of improving how trades are settled and managed.
It is important to add that the company has also been approved as a Fixed Income Clearing Corporation member. This will allow it to begin offering fixed-income services, including repurchase agreements and other funding options expected to roll out later in the year.
With these updates, Hidden Road aims to become a strong player for institutions that need access to digital and traditional markets. Following Ripple Labs’ acquisition of Hidden Road and its recent approval to operate as a broker-dealer, the company looks set for bigger moves.
Ripple has also partnered with Chipper Cash to enter the African market. The goal of this partnership is to speed up cross-border payments while reducing costs.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
