Hidden Road, a brokerage firm, has received a new license from FINRA allowing it to operate as a broker-dealer following its acquisition by Ripple Labs. This development aims to broaden the company’s services targeting institutional investors.
Receiving FINRA License
The new license allows Hidden Road to offer prime brokerage, clearing, and financing services for fixed-income assets, thereby providing significant access to the portfolios of large institutions.
Expansion of Hidden Road's Services
The company aims to bridge the gap between crypto assets and traditional markets, while also introducing new financing options for fixed-income products. "The new license is a significant step in enhancing our platform and expanding our client base," said CEO Noel Kimmel.
Strategic Initiatives of Ripple Labs
Ripple Labs’ acquisition of Hidden Road for approximately $1.25 billion plays a crucial role in the company’s growth strategy. The agreement introduces initiatives like using the RLUSD stablecoin as collateral and executing post-trade transactions through Ripple's XRP Ledger to improve transaction management.
With its new license and expanded service perspective post-acquisition, Hidden Road plans to provide solutions for institutional investors in both digital and traditional markets.
