Hidden Road, the prime brokerage firm that’s being acquired by Ripple, has obtained approval to operate as a U.S. broker-dealer from the Financial Industry Regulatory Authority (FINRA), the company said Thursday.
The license, granted to its subsidiary Hidden Road Partners CIV US LLC, will allow the firm to expand its fixed income prime brokerage platform, according to the press release. With the broker-dealer status, the firm plans to offer institutional clients a broader range of regulatory-compliant services in clearing, financing and prime brokerage of fixed income assets.
“[This] is a significant step in the development of Hidden Road’s fixed income prime brokerage platform and bolsters our capabilities in traditional financial markets,” Noel Kimmel, the firm’s president, said in a statement.
The development follows Hidden Road’s announcement earlier this month that it had entered into an agreement to be acquired for $1.25 billion by Ripple, the blockchain infrastructure services firm closely associated with the XRP Ledger (XRPL) network. The acquisition is subject to regulatory approval and expected to close in the coming months.
Backed by Ripple’s resources, Hidden Road said it expects to scale services significantly and position itself as one of the largest non-bank prime brokers. The firm also said earlier that it plans to migrate its post-trade operations onto the XRPL network, aiming to reduce costs and streamline settlement processes.
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