|
Getting your Trinity Audio player ready...
|
A prime brokerage firm now under Ripple Labs’ ownership, has secured approval to operate as a broker-dealer, paving the way for broader institutional engagement.
The license, granted by the Financial Industry Regulatory Authority (FINRA), marks a milestone for Hidden Road as it pushes to bridge digital assets with traditional finance. With this approval, the firm can now offer expanded services—such as prime brokerage, clearing, and financing—for fixed-income instruments, opening its doors to a larger pool of institutional investors.
Noel Kimmel, President of Hidden Road, emphasized the strategic impact of the license. “This broadens our client base significantly and aligns with our mission to provide institutional-grade infrastructure across both digital and traditional markets,” he said.
Founded in 2018 by former SAC Capital and Point72 executive Marc Asch, Hidden Road has carved a niche in digital assets and foreign exchange. The company gained traction in 2022 after a $50 million funding round backed by heavyweights like Citadel Securities, Coinbase Ventures, and Wintermute.
The firm’s trajectory took a major leap when Ripple Labs acquired it for $1.25 billion—Ripple’s largest acquisition to date. This acquisition now offers Hidden Road the financial backing to scale faster and innovate further. Kimmel noted that access to Ripple’s balance sheet and ecosystem allows them to remove growth barriers that previously limited the firm.
Under Ripple’s wing, Hidden Road will integrate RLUSD, Ripple’s stablecoin, as collateral for client services and migrate its post-trade operations to the XRP Ledger. This move aims to streamline trade settlement processes and reduce operational friction.
Also Read: Ripple vs. SEC: IPO Dreams Hinge on Crucial XRP Lawsuit Ruling, Says Lawyer
Additionally, Hidden Road has been approved as a member of the Fixed Income Clearing Corporation (FICC), enabling it to offer repurchase agreements and fixed-income funding solutions later this year.
With Ripple also forging partnerships like its recent tie-up with Chipper Cash to enhance cross-border payments in Africa, the fintech giant is clearly setting the stage for global expansion. Meanwhile, Hidden Road is positioning itself as a formidable gateway for institutions seeking unified access to both crypto and traditional financial markets.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
