Hidden Road Becomes Broker-Dealer After Ripple Acquisition
TL;DR Hidden Road, recently acquired by Ripple, has obtained a broker-dealer license, allowing it to expand its financial services for institutional investors. The company aims to become a comprehensive, non-bank brokerage firm covering both traditional and digital assets. It will also integrate Ripple’s RLUSD stablecoin as collateral and move its post-trade activity to the XRP Ledger blockchain, signaling a deeper fusion between crypto and traditional finance. Hidden Road, a firm known for its prime brokerage services in FX and digital assets, has received approval from the U.S. Financial Industry Regulatory Authority (FINRA) to operate as a broker-dealer. This milestone comes just a week after Ripple announced the acquisition of Hidden Road for $1.25 billion, marking the largest deal in Ripple’s history. With this new license, Hidden Road can now offer financing, custody, and clearing services for fixed-income products, positioning itself as a bridge between traditional finance and the crypto ecosystem. According to Noel Kimmel, the company’s president, this development will enable them to serve a broader base of institutional clients, many of whom have remained cautious about crypto due to a lack of reliable intermediaries. This status upgrade could also open the door to future strategic partnerships with hedge funds and global asset managers seeking exposure to digital assets through regulated infrastructure. In addition, Hidden Road is expected to expand operations into Asian and European markets, consolidating its global footprint and strengthening institutional adoption of blockchain-based solutions. It also plans to increase staffing and technical capacity to meet rising demand from institutions entering the space. Ripple Drives Crypto-Financial Evolution Forward Ripple’s acquisition not only boosts Hidden Road’s capital base but also grants it access to key technologies, such as the use of Ripple’s RLUSD stablecoin as collateral for prime-brokerage services. The firm also plans to migrate its post-trade operations to the XRP Ledger blockchain, offering faster, more transparent, and efficient settlement processes. Founded in 2018 by Marc Asch, a former executive at SAC Capital and Point72, Hidden Road has already attracted heavyweight investors such as Citadel Securities and Coinbase Ventures, both of whom participated in its $50 million Series A round in 2022. Since the FTX collapse, crypto prime brokerages have gained prominence by taking on counterparty risk, something traditional banks typically avoid in this space. This move not only solidifies Ripple’s standing as a major player in institutional finance, but also marks a crucial step forward in the maturation of the crypto ecosystem, combining tools from traditional financial systems with the disruptive potential of blockchain technology.