Hidden Road, which is set to be acquired by Ripple, has received a broker-dealer license in the US
The FINRA license will allow the company to expand its range of fixed income securities brokerage services to institutional clients.
Author: Christian Sandor, AI Boost | Edited by : Stephen Alpher Updated: April 18, 2025, 6:38 PM Published: April 17, 2025, 7:11 PM
What you need to know:
- Hidden Road announced Thursday that it has received approval from FINRA to operate as a broker-dealer in the U.S., allowing it to expand its fixed income prime brokerage platform.
- The firm plans to offer a more diversified set of services to institutional clients, including clearing, funding and prime brokerage services for fixed income assets.
- Ripple is set to acquire Hidden Road for $1.25 billion, with the deal expected to close in the coming months pending regulatory approval.
Hidden Road, the prominent brokerage firm that Ripple plans to acquire, has received approval to operate as a broker-dealer in the United States from the Financial Industry Regulatory Authority (FINRA), the company announced on Thursday.
The license, issued to its subsidiary Hidden Road Partners CIV US LLC, will allow the firm to expand its fixed-income prime brokerage platform, according to a press release. By becoming a broker-dealer, the company plans to offer institutional clients a broader range of services that comply with regulatory requirements in the areas of clearing, funding, and prime brokerage of fixed-income assets.
“[This] is an important step in the evolution of Hidden Road's fixed income brokerage platform, which enhances our capabilities in traditional financial markets,” said company president Noel Kimmel.
The development comes after Hidden Road announced earlier this month that it had reached an agreement to be acquired for $1.25 billion by Ripple, a blockchain infrastructure services company closely involved with the XRP Ledger (XRPL) network. The deal is subject to regulatory approval and is expected to close in the coming months.
Backed by Ripple, Hidden Road has said it intends to significantly expand its services and become one of the largest non-bank prime brokers. The firm has also previously mentioned plans to move its post-trade operations to the XRPL network in an effort to reduce costs and streamline the settlement process.
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