Hidden Road Obtains U.S. Broker-Dealer Registration from FINRA, Expanding Its Fixed-Income Prime Brokerage Services

The license, granted to Hidden Road Partners CIV US LLC, authorizes the company to offer compliant clearing, financing, and trading services to institutional clients across traditional fixed-income markets.

The U.S. division of Hidden Road, the prime brokerage firm set to be acquired by Ripple, has reportedly obtained broker-dealer registration from the Financial Industry Regulatory Authority (FINRA).

The license, granted to Hidden Road Partners CIV US LLC, will allow the firm to offer compliant clearing, financing, and trading services to institutional clients across traditional fixed-income markets.

This development comes ahead of the expected completion of a $1.25 billion acquisition by blockchain infrastructure company Ripple, announced earlier this month. The deal is currently undergoing regulatory review and, if approved, would be the largest in Ripple’s history.

With the new status, Hidden Road can now deepen its engagement in U.S. fixed-income markets. The approval will enable the firm to expand its service offerings to institutional clients seeking regulated brokerage services for bonds and other debt instruments.

“This license is a key milestone in the development of our fixed-income prime brokerage platform,” said Noel Kimmel, Hidden Road’s president. “It also serves to further strengthen our operational footprint in traditional financial markets.”

Founded in 2018 with an initial focus on foreign exchange, Hidden Road has since diversified into digital and traditional asset classes. The firm drew further attention after the collapse of FTX in 2022, as institutional demand for reliable digital asset prime services increased.

Hidden Road’s new regulatory status is a significant step in expanding its capabilities and catering to the evolving needs of institutional clients.

Ripple Acquisition Spurs Further Expansion

The timing of the FINRA approval aligns closely with Ripple’s announcement of its agreement to acquire Hidden Road, which was first reported by Blockworks and later confirmed by several media outlets.

Announced on April 8, the pending deal would see Ripple acquire a multi-asset, non-bank prime brokerage platform as part of its broader strategy to integrate blockchain technology into Wall Street infrastructure.

Hidden Road currently clears over $10 billion in transactions daily for more than 300 institutional clients. It provides a range of prime brokerage services, including clearing, financing, lending, and research to hedge funds, asset managers, and other financial institutions.

If the acquisition is finalized, Hidden Road would become the first crypto-native organization to run a full-scale, multi-asset prime brokerage, offering a unique combination of digital and traditional financial capabilities.

Despite the pending acquisition, Hidden Road has indicated that it will continue scaling its services independently. The firm plans to expand across asset classes and strengthen its fixed-income capabilities, with or without the deal’s immediate closure.

As part of its post-acquisition roadmap, Hidden Road plans to migrate its post-trade operations to the XRP Ledger (XRPL). The goal is to streamline settlement processes, reduce operational costs, and introduce blockchain efficiencies into institutional clearing infrastructure.

The migration of settlement functions to XRPL aligns with Ripple’s broader strategy of embedding crypto technology into traditional finance. According to Ripple CTO David Schwartz, the upcoming integration is a pivotal moment for the XRPL network.

Moreover, Ripple CEO Brad Garlinghouse has envisioned that Hidden Road, supported by Ripple’s infrastructure, could eventually become "the world's largest non-bank prime broker."

The migration process is expected to follow the regulatory clearance of the acquisition deal. Until then, Hidden Road will continue to operate within existing regulatory standards while preparing its systems for blockchain-based settlement.