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Hidden Road, a prime brokerage firm, has introduced crypto swap prime brokerage services for U.S. institutional clients. This move expands access to over-the-counter (OTC) cash-settled swaps across major cryptocurrencies, marking a significant development in the digital asset space.

Bringing OTC Crypto Swaps to U.S. Institutions

The new service is being offered by Hidden Road’s UK-based subsidiary, Hidden Road Partners CIV UK Ltd., which is regulated by the Financial Conduct Authority (FCA). This expansion enables U.S.-based institutional investors to engage in OTC crypto swaps, addressing what the company describes as an “under-served” market segment.

“While OTC swaps represent a significant portion of digital asset trading volumes globally, until now, they were largely unavailable to U.S. institutions. With the launch of our swap prime brokerage capabilities for the United States market, we can provide clients with access to an expanded range of products and solutions.”

— Michael Higgins, International CEO and Global Head of Corporate Development, Hidden Road

Enhanced Trading Tools for Institutional Clients

The prime brokerage service includes advanced tools such as cross-margining and financing options. These features aim to help institutional clients manage trading positions and collateral more efficiently across multiple counterparties. Such tools are designed to streamline operations for investors, enhancing their ability to navigate the complexities of the cryptocurrency market.

Ripple Acquisition and Growth Potential

The launch of these services follows Hidden Road’s recent agreement to be acquired by Ripple in a $1.25 billion deal announced in April. This acquisition, which is still pending regulatory approval, is expected to close in the coming months. The deal includes a mix of cash, XRP, and Ripple stock.

Before the acquisition, Hidden Road had already attracted investments from notable firms such as Citadel Securities. With Ripple’s backing, Hidden Road aims to scale its operations significantly, positioning itself as one of the largest non-bank prime brokers globally.

“With Ripple’s support, Hidden Road will exponentially expand its capacity to service its pipeline and become one of the largest non-bank prime brokers globally.”

Why This Matters for the Crypto Market

OTC swaps play a crucial role in the global cryptocurrency trading ecosystem. However, regulatory and product limitations have historically restricted access for U.S. institutions. Hidden Road’s new offering addresses this gap, potentially driving greater institutional participation in the U.S. crypto market. This development aligns with broader trends of increasing collaboration between traditional finance (TradFi) and digital assets.

By introducing these services, Hidden Road is not only enhancing its product suite but also contributing to the maturity and accessibility of cryptocurrency markets for institutional players. As the industry evolves, such initiatives are expected to further integrate digital assets into mainstream financial systems.

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