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Hidden Road Secures FINRA Broker-Dealer Status
Hidden Road, a subsidiary of Ripple Labs, has successfully gained approval from the Financial Industry Regulatory Authority (FINRA) to function as a FINRA-member broker-dealer. This achievement is a pivotal advancement for Hidden Road Partners CIV US LLC, enhancing their innovative fixed income prime brokerage platform, which presently includes Fixed Income Repo and Global Funding services.
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Implications of Broker-Dealer Designation Following Ripple’s Takeover
The newly acquired broker-dealer status empowers Hidden Road to offer a comprehensive array of regulatory-compliant services to institutional clients. These services encompass prime brokerage, clearing, and financing for fixed income assets. Noel Kimmel, President of Hidden Road, highlighted the significance of this development, stating, “Securing our broker-dealer registration marks a critical milestone in the evolution of Hidden Road’s fixed income prime brokerage capabilities, fortifying our presence in conventional financial markets.”
With the newly attained designation, Hidden Road is poised to deliver technologically advanced solutions to a broader spectrum of institutional clients. Kimmel expressed confidence in the company’s trajectory, anticipating continued delivery of “exceptional execution.”
This announcement coincides with Ripple’s recent definitive agreement to acquire Hidden Road for $1.25 billion, as disclosed on April 8, 2025. The acquisition is expected to finalize in the upcoming months, subject to regulatory approvals.
US Market Prepared for Digital Asset Integration
With substantial support from Ripple, Hidden Road is set to significantly expand its service offerings, positioning itself as a leading non-bank prime broker on a global scale. Brad Garlinghouse, CEO of Ripple, commented on the evolving landscape for digital asset adoption in the US, emphasizing the market’s increased openness following recent regulatory shifts.
Garlinghouse stated, “We are at a pivotal juncture for the next wave of digital asset adoption, as the US market is effectively accessible for the first time following the conclusion of the previous SEC’s regulatory overhang.”
The acquisition is poised to enhance the utility of Ripple USD (RLUSD), an enterprise-grade USD-backed stablecoin, which will serve as collateral across Hidden Road’s prime brokerage offerings. Additionally, Hidden Road plans to transition its post-trade activities to the XRP Ledger (XRPL), a move anticipated to streamline operations and reduce expenses.
Ripple also seeks to optimize costs and liquidity within its Ripple Payments cross-border solution, while delivering critical custody services for Hidden Road’s clients who require secure, bank-grade digital asset custody.
Marc Asch, Founder and CEO of Hidden Road, commented on the transformative nature of the partnership, “With additional resources, licenses, and enhanced risk capital, this partnership will catalyze substantial growth in Hidden Road’s operations, enabling us to expand our capacity, introduce new products, and serve a broader range of markets and asset classes.”
Asch reassured that the alliance with Ripple will retain the trust and reliability expected by institutional clients from traditional markets, now tailored for a digital era.
XRP Market Dynamics
Currently, XRP is trading at $2.0570, experiencing a decline of over 10% over the monthly timeframe.
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