Introduction
Hidden Road, a prime brokerage firm, recently announced its new crypto swap services specifically designed for institutional clients in the United States. This launch comes as the firm awaits the completion of its $1.25 billion acquisition by Ripple, pending regulatory approvals.
Details of the New Crypto Swap Services
The newly launched service facilitates cash-settled swaps of leading cryptocurrencies and is managed through Hidden Road’s UK-based entity, which is regulated by the Financial Conduct Authority (FCA). This initiative provides U.S. institutions with a valuable resource in a market that has had limited product offerings for such swaps.
Statements from Leadership
Michael Higgins, the company’s International CEO and Global Head of Corporate Development, stated: “Although OTC swaps account for a large segment of global digital asset trading, they have been largely inaccessible to institutions in the United States until now. Our new swap prime brokerage capabilities will enable clients to tap into a broader array of products and services.”
Service Enhancements
This service rollout includes cross-margining and financing options aimed at helping institutional clients manage their trading operations and collateral across various counterparties and market positions.
Acquisition and Future Prospects
The announcement follows Hidden Road’s agreement to be acquired by Ripple, made public in April. This acquisition will position Hidden Road among the leading non-bank prime brokers globally. While the deal is primarily structured as a cash transaction with portions in XRP and Ripple stock, it remains under regulatory review. Hidden Road expects the deal to finalize in the upcoming months. Ripple’s financial backing is anticipated to significantly enhance Hidden Road’s ability to meet growing client demands and service its business pipeline effectively.
