Ripple's Hidden Road Secures US Broker-Dealer License, Expands Services

Hidden Road, a digital asset and foreign exchange prime brokerage firm recently acquired by Ripple, has secured a broker-dealer license in the US. This regulatory approval enables Hidden Road to offer a comprehensive suite of prime brokerage services to both new and existing institutional clients, ensuring full compliance with regulatory standards. The firm’s President, Noel Kimmel, highlighted that the license allows Hidden Road to provide prime brokerage, clearing, and financing services across fixed-income assets to a broader range of customers. This move is a significant step toward the company’s goal of becoming a full-service, non-bank brokerage across asset classes.

The approval extends Hidden Road’s reach beyond digital assets and foreign exchange into traditional markets, including fixed income, where it recently became a Fixed Income Clearing Corporation (FICC) clearing member. This expansion is particularly timely, as the demand for prime brokerage services offering counterparty risk mitigation has grown sharply across the crypto sector following the 2022 FTX collapse. The broker-dealer status enables Hidden Road to offer fixed-income repurchase agreements, global funding services, and clearing capabilities across new asset classes later this year.

Ripple's acquisition of Hidden Road for $1.25 billion was driven by the goal of broadening Ripple's services for institutional clients. This acquisition positioned Ripple as the first crypto-native firm to own and operate a multi-asset prime brokerage platform with an established institutional network. Ripple CEO Brad Garlinghouse described the transaction as a “once-in-a-lifetime opportunity” to connect traditional financial markets with blockchain-powered ecosystems. The integration of Hidden Road’s infrastructure is expected to accelerate institutional adoption of blockchain-based financial services, broadening Ripple's service offerings into trade clearing, financing, custody, and risk management.

Ripple plans to deploy its RLUSD stablecoin as collateral for cross-asset trades within Hidden Road’s brokerage services. Additionally, Hidden Road will use the XRP Ledger to facilitate faster trade settlements, aiming to cut settlement times from hours to minutes and reduce operational costs. This strategic move is likely to strengthen Ripple's competitive edge in the rapidly evolving digital asset landscape, further solidifying its position in the market and enhancing its ability to attract and serve a broader range of institutional clients.