The leading brokerage firm Hidden Road has launched crypto swap services for American clients while awaiting regulatory approval for its $1.25 billion acquisition by Ripple.
Prime broker Hidden Road has launched top-tier brokerage services for crypto swaps for institutional clients in the U.S., expanding access to over-the-counter swaps on major cryptocurrencies.
The new product is provided by the UK branch of Hidden Road, Hidden Road Partners CIV UK Ltd., which is regulated by the Financial Conduct Authority. With the latest upgrade, U.S.-based institutions will now be able to execute over-the-counter swaps in a market that, according to the company, has been "underserved from a product perspective."
"Although over-the-counter swaps represent a significant share of global digital asset trading volumes, until now they were largely unavailable to U.S. institutions. With the launch of our prime swap brokerage capabilities for the U.S. market, we can provide our clients access to an expanded range of products and solutions."
Michael Higgins, International CEO and Global Head of Business Development for Hidden Road
The prime brokerage service offers cross-margining and financing tools that the company says can help institutional clients manage transactions and collateral more efficiently across multiple counterparties and positions.
The deployment comes shortly after Hidden Road reached a deal in April to be acquired by Ripple for $1.25 billion. Prior to the acquisition, Hidden Road had received investments from Citadel Securities and other firms.
However, the deal is expected to close in the coming months, as it is still subject to regulatory approvals, the broker said. As crypto.news reported earlier, the deal will be primarily cash-based, along with a portion paid in XRP stock and Ripple.
With the support of Ripple, Hidden Roads says it will "exponentially expand its capacity to serve its pipeline and become one of the largest non-bank leading brokers in the world."
