Hidden Road, the crypto prime broker acquired by Ripple last month, has cemented its presence in the Middle East by securing an in-principle approval from the Financial Services Regulatory Authority (FSRA) of ADGM to operate as a regulated financial services firm. The approval has been granted to the ADGM entity of Hidden Road.
Targeting UAE Institutions
When fully approved, the licence will allow Hidden Road to offer clearing and prime brokerage services across its global suite of traditional and digital asset products to institutional investors in the UAE.
“ADGM's high regulatory standards make it a key market for institutional growth,” said James Stickland, UAE CEO of Hidden Road.
Ripple acquired Hidden Road last month in one of the largest deals in the crypto industry. The $1.25 billion transaction will be completed with a mix of cash, XRP tokens and equity, and is expected to close in the coming months.
According to Hidden Road’s International CEO, Michael Higgins, the acquisition was “pretty organic” as “Ripple was well known to Hidden Road as a customer. Hidden Road was known to members of the Ripple management team. There was a natural relationship between our firms.”
Read more: “Hidden Road Has 20x More Balance Sheet Demand Than Supply; the Ripple Deal Solves This”
The Growing Demand for Crypto Prime Brokers
Prime brokers play a key role in financial markets, including the growing crypto sector, by offering a full range of services such as trading, custody, and lending to major institutions like hedge funds, banks, and private equity firms.
Hidden Road currently clears $3 trillion annually across all markets and serves over 300 major institutional clients. With Ripple’s backing, the broker plans to grow its capacity to serve even more clients in the future.
You may also like: Crypto Prime Brokers Leave Banks Behind
The UAE licence was the second regulatory approval the crypto prime broker secured after its acquisition by the blockchain giant. Last month, Hidden Road received approval from FINRA to operate as a broker-dealer in the US.
Apart from the two new licences, the platform operates with authorisation from regulators in the Netherlands and the United Kingdom.
“Our goal from day one has been to equip clients with seamless access both to traditional and digital markets,” said Noel Kimmel, President at Hidden Road. “We continue to actively pursue regulatory approvals around the world to deliver on that commitment.”
This article was written by Arnab Shome at www.financemagnates.com.
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