Hidden Road, the prime brokerage firm recently acquired by Ripple, has introduced a digital asset prime brokerage service tailored to institutional clients in the United States. This launch grants U.S.-based institutions access to over-the-counter (OTC) crypto swaps, a product previously out of reach for many domestic firms.
The newly available service allows institutions to execute cash-settled OTC swaps involving multiple digital tokens. These transactions happen outside the market and suit large sales where it is essential to avoid external price variations.
All operations related to the new product will be handled by Hidden Road Partners CIV UK Ltd, a Financial Conduct Authority (FCA) regulated company based in the UK. This framework serves to provide the required regulations for handling U.S. institutional clients.
It also offers features for cross-margining and financing transactions to make trading digital assets in various positions and strategies safer and more efficient for institutions.
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New Institutional Channel for Private Digital Asset Trading
Michael Higgins, International CEO and Global Head of Corporate Development at Hidden Road stated that OTC swaps make up a significant portion of global digital asset trading volumes. Despite this, U.S. institutions have had limited access to such instruments, often due to regulatory barriers or lack of infrastructure.
With this launch, Hidden Road aims to fill that market gap by offering U.S. firms broader access to crypto trading products typically used by global players. The service must allow large trade volumes between private users while following the rules provided by the FCA.
In April, Ripple bought Hidden Road for $1.25 billion to boost its presence in institutional digital assets. This company allows Ripple to broaden its services to include non-bank trading, putting it in a better position to assist valuable cryptocurrency participants with their needs.
New OTC crypto swaps launched by Hidden Road represent a major advance for institutions in the U.S. Through regulation and advanced tools, the platform lets firms privately access and trade in digital asset markets.
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