Hidden Road has officially obtained approval to operate as a U.S. broker-dealer from the Financial Industry Regulatory Authority (FINRA). This new status will allow the firm to enhance its services, particularly in fixed income prime brokerage, aimed at institutional clients.
Ripple, known for its blockchain infrastructure services closely linked to the XRP Ledger, is set to acquire Hidden Road for $1.25 billion, a deal expected to conclude in the following months post regulatory approval.
Key Information:
- Hidden Road is expanding its fixed income prime brokerage services.
- The acquisition will empower Hidden Road to offer improved compliance and a wider array of services including clearing, financing, and prime brokerage for fixed income assets.
- Noel Kimmel, the company’s president, remarked, “This is a significant step in the development of Hidden Road’s fixed income prime brokerage platform and bolsters our capabilities in traditional financial markets.”
Backed by Ripple, Hidden Road anticipates vastly scaling its operations and aims to position itself as a leading non-bank prime broker. Additionally, it plans to transition its post-trade operations onto the XRP ledger, which may greatly reduce costs and streamline its settlement processes.
