- Hidden Road gains FINRA license to expand fixed-income brokerage services.
- Ripple’s $1.25B acquisition of Hidden Road awaits regulatory approval.
- Post-trade systems to migrate to XRPL for faster, cost-efficient settlements.
Hidden Road’s U.S. division has obtained broker-dealer registration from the Financial Industry Regulatory Authority (FINRA), marking a major expansion of the firm’s 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 development precedes 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 FINRA license, 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.
Hidden Road President Noel Kimmel stated that the license represents a key move in the firm’s fixed-income prime brokerage platform. He added that the new regulatory status strengthens the company’s operational footprint in traditional financial markets.
The firm, founded in 2018 with an initial focus on foreign exchange, has since diversified into digital and traditional asset classes. It drew further attention after the collapse of FTX in 2022, as institutional demand for reliable digital asset prime services increased.
Ripple Acquisition Tied to Multi-Asset Brokerage Strategy
The timing of the FINRA approval aligns closely with Ripple’s April 8 announcement of its agreement to acquire Hidden Road. If finalized, the deal would mark Ripple’s entry into traditional finance by allowing it to own a multi-asset, non-bank prime brokerage platform.
Ripple is positioning the acquisition as a strategic move to integrate blockchain technology into Wall Street infrastructure. Hidden Road already clears over $10 billion in transactions daily for more than 300 institutional clients. Under Ripple’s ownership, the firm would be the first crypto-native organization to run a full-scale, multi-asset prime brokerage.
Despite the pending acquisition, Hidden Road has indicated 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.
Blockchain Integration Through XRPL
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. Ripple CTO David Schwartz described the upcoming integration as a pivotal moment for the XRPL network. Ripple CEO Brad Garlinghouse has stated 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. Hidden Road will continue to operate under existing regulatory standards while preparing its systems for blockchain-based settlement.
