Ripple-Backed Hidden Road Achieves Broker-Dealer License Approval

Ripple Labs-owned Hidden Road has announced that its subsidiary, Hidden Road Partners CIV US LLC, has received approval from the Financial Industry Regulatory Authority (FINRA) to operate as a FINRA-member broker-dealer. 

This approval allows Hidden Road to enhance its recently launched fixed income prime brokerage platform, which currently offers Fixed Income Repo and Global Funding services.

New Broker-Dealer Status Amid Ripple Acquisition

The designation as a broker-dealer enables Hidden Road to provide both new and existing institutional clients with a comprehensive suite of regulatory-compliant services, including prime brokerage, clearing, and financing for fixed income assets. 

Noel Kimmel, President at Hidden Road, emphasized the importance of this registration, stating, “Our broker-dealer registration is a significant step in the development of Hidden Road’s fixed income prime brokerage platform and bolsters our capabilities in traditional financial markets.”

With its new status, Hidden Road aims to deliver a technology-driven service offering to a wider range of institutional clients. Kimmel noted the momentum behind the business and expressed optimism about continuing to provide “superior execution.”

The backdrop to this announcement includes Ripple’s recent definitive agreement to acquire Hidden Road for $1.25 billion, which was disclosed on April 8, 2025. The acquisition is expected to close in the coming months, pending regulatory approvals. 

US Market Ready For Digital Asset Adoption

With Ripple’s substantial financial backing, Hidden Road anticipates a significant expansion in its service capacity, positioning itself as one of the largest non-bank prime brokers globally.

Brad Garlinghouse, CEO of Ripple, highlighted the current landscape for digital asset adoption in the US, noting that the market is now more receptive than ever following regulatory changes. 

“We are at an inflection point for the next phase of digital asset adoption – the US market is effectively open for the first time due to the regulatory overhang of the former SEC coming to an end,” he stated. 

The acquisition also enhances the utility of Ripple USD (RLUSD), an enterprise-grade USD-backed stablecoin, which will be utilized as collateral across Hidden Road’s prime brokerage products. 

Furthermore, Hidden Road plans to migrate its post-trade activities to the XRP Ledger (XRPL), which is expected to streamline operations and reduce costs.

Ripple also aims to optimize costs and liquidity within its cross-border payments solution, Ripple Payments, while providing essential custody services for Hidden Road’s clientele who require bank-grade digital asset custody.

Marc Asch, Founder and CEO of Hidden Road, remarked on the transformative potential of the deal, stating, “With new resources, licenses, and added risk capital, this deal will unlock significant growth in Hidden Road’s business, allowing us to increase capacity for our customer base, expand into new products, and service more markets and asset classes.” 

Asch emphasized that the partnership with Ripple will maintain the trust and reliability that institutional clients expect from traditional markets, now designed for a digital future.

At the time of writing, XRP trades at $2.0570, down over 10% on the monthly time frame. 

Featured image from DALL-E, chart from TradingView.com