Hidden Road Granted U.S. Broker-Dealer License, Aims to Expand Fixed Income Services

Hidden Road, a prime brokerage firm, has been granted approval to operate as a U.S. broker-dealer by the Financial Industry Regulatory Authority (FINRA). This license, awarded to its subsidiary Hidden Road Partners CIV US LLC, will enable the firm to broaden its fixed income prime brokerage platform. With this new status, Hidden Road aims to provide institutional clients with a wider array of regulatory-compliant services, including clearing, financing, and prime brokerage of fixed income assets.

Noel Kimmel, the firm’s president, highlighted the significance of this development, stating that it marks a crucial step in the evolution of Hidden Road’s fixed income prime brokerage platform. This advancement is expected to enhance the firm’s capabilities within traditional financial markets.

This news follows Hidden Road’s recent announcement that it has entered into an agreement to be acquired by Ripple, a blockchain infrastructure services firm closely associated with the XRP Ledger (XRPL) network. The acquisition, valued at $1.25 billion, is subject to regulatory approval and is anticipated to be finalized in the coming months.

With the backing of Ripple’s resources, Hidden Road anticipates a significant scaling of its services, positioning itself as one of the largest non-bank prime brokers. The firm has also expressed plans to migrate its post-trade operations onto the XRPL network, aiming to reduce costs and streamline settlement processes. This strategic move is expected to further integrate blockchain technology into traditional financial services, potentially revolutionizing the way transactions are handled in the industry.