Hidden Road, the prime brokerage agency that is being acquired by Ripple, has obtained approval to function as a U.S. broker-dealer from the Monetary Trade Regulatory Authority (FINRA), the corporate stated Thursday.
The license, granted to its subsidiary Hidden Road Companions CIV US LLC, will enable the agency to increase its fastened revenue prime brokerage platform, based on the press launch. With the broker-dealer standing, the agency plans to supply institutional purchasers a broader vary of regulatory-compliant providers in clearing, financing and prime brokerage of fastened revenue property.
“[This] is a significant step in the development of Hidden Road’s fixed income prime brokerage platform and bolsters our capabilities in traditional financial markets,” Noel Kimmel, the agency’s president, stated in a press release.
The event follows Hidden Road’s announcement earlier this month that it had entered into an settlement to be acquired for $1.25 billion by Ripple, the blockchain infrastructure providers agency carefully related to the XRP Ledger (XRPL) community. The acquisition is topic to regulatory approval and anticipated to shut within the coming months.
Backed by Ripple’s assets, Hidden Road stated it expects to scale providers considerably and place itself as one of many largest non-bank prime brokers. The agency additionally stated earlier that it plans emigrate its post-trade operations onto the XRPL community, aiming to scale back prices and streamline settlement processes.
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