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Prime brokerage Hidden Road, which was recently purchased by Ripple for $1.25 billion, has obtained a broker-dealer license from the Financial Industry Regulatory Authority (FINRA) \u2014 a strategic decision that boosts its capabilities in the fixed-income arenas.<\/p>\n
As a FINRA broker-dealer, Hidden Road is positioned to enhance its fixed-income prime brokerage offerings and broaden its functions in conventional markets, the firm declared<\/a> on April 17. This encompasses providing institutional clients with regulatory-compliant clearing and financing options across fixed-income securities.<\/p>\n Membership in FINRA signifies a substantial dedication to compliance and safeguarding investors. It also enhances the registrants\u2019 credibility in the perspective of investment bankers, according to Telos Capital Advisors<\/a>, a Dallas-based investment banking entity.<\/p>\n Hidden Road manages a prime brokerage and credit network, processing over $10 billion in daily trades on behalf of more than 300 institutional clients. Founded in 2018, the firm initially concentrated on foreign exchange markets before diversifying into digital assets.<\/p>\n These advantages positioned Hidden Road as an appealing acquisition for the blockchain payments framework Ripple, which ultimately acquired the organization<\/a> on April 8.<\/p>\n Ripple\u2019s chief technology officer, David Schwartz, characterized the acquisition<\/a> as a \u201cpivotal moment for the XRP Ledger\u201d by broadening the settlement layer\u2019s application across conventional financial sectors.<\/p>\n Under Ripple\u2019s guidance, Hidden Road will \u201csignificantly enhance its ability to accommodate its client needs and become the largest non-bank prime broker worldwide,\u201d remarked CEO Brad Garlinghouse.<\/p>\n Related: <\/strong><\/em>US to launch its first XRP-based ETF on NYSE Arca<\/strong><\/em><\/a><\/p>\n Ripple\u2019s acquisition of Hidden Road follows a favorable regulatory atmosphere in the United States after the election of President Donald Trump.<\/p>\n In January, Ripple obtained money transmitter licenses<\/a> in both Texas and New York, enabling the firm to facilitate capital transfers within those jurisdictions.<\/p>\n Two months later, the Securities and Exchange Commission (SEC) dismissed its legal action against Ripple<\/a>, concluding one of crypto\u2019s most extended legal disputes and allowing the company to refocus on growth.<\/p>\n At that moment, crypto attorney John Deaton stated<\/a> that the ruling serves as the \u201cfinal affirmation that [XRP tokens] are regarded as digital commodities, not securities.\u201d<\/p>\n The SEC is poised to welcome a pro-crypto Chair after Paul Atkins\u2019 nomination was ratified<\/a> by the US Senate on April 9. Following his swearing-in, Atkins will replace Mark Yueda, who has been serving as Acting Chair since January 20.<\/p>\nSupportive regulatory environment fosters Ripple\u2019s growth<\/h2>\n