Hidden Road Receives Broker-Dealer License from Financial Industry Regulatory Authority
Hidden Road, now owned by Ripple Labs, has received approval from the Financial Industry Regulatory Authority to operate as a broker-dealer. This license enables Hidden Road to expand its services for institutional investors.
Key Developments
- Approval allows expansion into prime brokerage, clearing, and financing for fixed-income assets.
- President Noel Kimmel emphasized broader customer access.
- Hidden Road aims to be a complete brokerage without relying on traditional banks.
- Established in 2018, Hidden Road focuses on digital assets and foreign exchange.
- In 2022, raised $50 million from investors like Citadel Securities and Coinbase Ventures.
Ripple Acquisition and Future Plans
- Ripple acquired Hidden Road for $1.25 billion, its largest purchase.
- Acquisition enhances Hidden Road’s growth potential due to Ripple's financial backing.
- Plans to use Ripple’s RLUSD stablecoin as collateral and transition post-trade operations to Ripple’s XRP Ledger.
- Approved as a Fixed Income Clearing Corporation member to offer funding options later this year.
These developments position Hidden Road as a significant player in both digital and traditional markets. Ripple is also partnering with Chipper Cash to enhance cross-border payment efficiency in Africa.