- Hidden Road secures FINRA license, expands into fixed-income clearing and financing.
- Ripple’s $1.25B acquisition advances institutional brokerage and XRPL integration plans.
- Hidden Road aims to become a top non-bank prime broker with $10B+ daily transaction volume.
Hidden Road, recently acquired by Ripple, secured the Financial Industry Regulatory Authority. FINRA’s license to act as a registered broker-dealer. This allows the company to expand its services into traditional fixed-income markets. This expansion follows Ripple’s recent $1.25 billion acquisition of the firm, significantly boosting Hidden Road’s institutional services.
On April 17th, Hidden Road confirmed the FINRA license lets it offer fixed-income repurchase agreements, financing, and clearing services to institutional clients. The prime brokerage and credit network already handles over $10 billion in daily transactions across more than 300 institutional accounts.
What Does FINRA Approval Mean for Hidden Road Clients?
This FINRA registration allows Hidden Road to provide compliant clearing and financing in fixed-income securities. According to investment bank Telos Capital Advisors, FINRA membership sets a high standard of compliance and credibility in institutional finance.
Related: Ripple Bets $1.25B That XRPL Can Handle TradFi Volume via Hidden Road
The firm recently became a clearing member of the Fixed Income Clearing Corporation (FICC), strengthening its push into traditional market infrastructure.
How Does the Ripple Acquisition Fit In?
This expansion builds on Ripple’s April 8th announcement it was acquiring Hidden Road for $1.25 billion – the largest deal in Ripple’s history. The deal makes Ripple the first crypto-native firm owning a multi-asset prime brokerage platform with a strong institutional network.
Founded in 2018 with a foreign exchange focus, Hidden Road expanded into digital assets and gained attention after the 2022 FTX collapse.
While the deal awaits final regulatory sign-off, expected soon, Hidden Road leadership confirms the firm will keep expanding services across asset classes, including traditional fixed income. President Noel Kimmel stated that the new license signals a step toward becoming a full-service, non-bank brokerage firm.
What Are Hidden Road’s Next Steps with Ripple?
Looking ahead, Hidden Road also plans to integrate its post-trade infrastructure with the XRP Ledger (XRPL) network. The adoption is intended to streamline settlement processes and reduce operational costs.
Related: Ripple Expands in UAE with New Financial Services License
The firm expects to scale its services further using Ripple’s resources, with long-term plans to position itself among the world’s largest non-bank prime brokers.
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