In a significant development for the digital asset landscape, Hidden Road, a prime brokerage platform recently acquired by Ripple, has officially launched a digital assets prime brokerage tailored for the U.S. market. This innovative offering marks a pivotal moment for institutional investors, providing them with access to over-the-counter (OTC) crypto swaps, a previously underserved avenue in the United States.
The new service enables U.S.-based institutional clients to execute cash-settled OTC swaps across various tokens, thereby enhancing their trading capabilities. This offering will be facilitated through Hidden Road’s UK-based entity, Hidden Road Partners CIV UK Ltd, which operates under the regulations of the UK’s Financial Conduct Authority (FCA). In addition to swaps, the expansion includes cross-margining and financing services for digital assets, further solidifying Hidden Road’s position in the market.
“The United States digital asset market has long been under-served from a product standpoint,” remarked Michael Higgins, International CEO and Global Head of Corporate Development at Hidden Road, in a recent release. “While OTC swaps represent a significant portion of digital asset trading volumes globally, until now, they were largely unavailable to U.S. institutions. With the launch of our swap prime brokerage capabilities, we can provide clients with access to an expanded range of products and solutions.”
OTC swaps, which are executed privately rather than on public exchanges, are particularly favored by institutional players. This method of trading is commonly employed to execute large trades discreetly, thus mitigating the risk of substantial price swings on open markets.
This launch comes on the heels of Ripple’s acquisition of Hidden Road in April for a remarkable $1.25 billion. The acquisition aims to bolster Hidden Road’s global expansion efforts as a non-bank prime broker within the burgeoning digital asset space, positioning it as a go-to resource for institutional investors seeking robust trading solutions.
