Hidden Road Gains Broker Dealer License as Ripple Acquisition Advances

Hidden Road has received the green light from the Financial Industry Regulatory Authority (FINRA) to operate as a broker-dealer in the U.S., the company confirmed on Thursday. The approval was granted to its subsidiary, Hidden Road Partners CIV US LLC.

Good to Know

• Hidden Road has secured U.S. broker-dealer status through FINRA.
• The firm was recently acquired by Ripple in a $1.25 billion deal.
• Hidden Road plans to move post-trade operations onto XRPL to cut costs.

The regulatory milestone comes just after Hidden Road announced plans to be acquired by Ripple for $1.25 billion. That deal, revealed earlier this month, is still pending regulatory clearance and is expected to close within the next few months.

Following the acquisition, Hidden Road expects to expand quickly, aiming to become one of the top non-bank prime brokers in the market. The combination of regulatory approval and Ripple’s support puts the firm in a strong position to grow in both traditional and blockchain-based financial sectors.

With the new license, Hidden Road is set to broaden its fixed income prime brokerage services, focusing on clearing, financing, and compliance-based offerings tailored to institutional clients. President Noel Kimmel described the move as an upgrade to the firm’s capabilities in traditional finance. “It is a significant step in the development of Hidden Road’s fixed income prime brokerage platform and bolsters our capabilities in traditional financial markets,” he said.

Ripple, known for its work on the XRP Ledger (XRPL), intends to bring Hidden Road’s post-trade functions onto its blockchain infrastructure. By migrating these processes to XRPL, both companies hope to improve settlement speed and lower operational costs.