Source: Cointelegraph Original: "{title}"
Recently acquired by Ripple for $1.25 billion, the prime brokerage firm Hidden Road has received a broker-dealer license from the Financial Industry Regulatory Authority (FINRA) — a move that will enhance its capabilities in the fixed income market.
Hidden Road announced on April 17 that, as a FINRA-certified broker-dealer, the company will further develop its fixed income prime brokerage business and expand its capabilities in traditional markets. This includes providing regulatory-compliant clearing and financing services for institutional clients, covering various fixed income securities.
Joining FINRA is seen as a significant commitment by the company to compliance and investor protection. According to Dallas-based investment bank Telos Capital Advisors, FINRA membership also greatly enhances the firm's credibility in the investment banking community.
Hidden Road operates a prime brokerage and credit network, clearing over $10 billion in trades daily on behalf of more than 300 institutional clients. The company was founded in 2018, initially focusing on the foreign exchange market, and has gradually expanded into the digital asset space.
These advantages made Hidden Road an ideal acquisition target for the blockchain payment network Ripple. Ripple ultimately completed the acquisition of the company on April 8.
Ripple's Chief Technology Officer David Schwartz stated that this acquisition is "a significant milestone for the XRP Ledger," which will expand its settlement layer use cases in traditional financial markets.
Ripple's CEO Brad Garlinghouse added that, with Ripple's support, Hidden Road will "exponentially expand its service capabilities, becoming the largest non-bank prime broker globally."
Positive regulatory environment aids Ripple's expansion
Against the backdrop of a favorable regulatory environment in the U.S., Ripple acquired Hidden Road. This trend was further propelled by Donald Trump's election as president.
In January of this year, Ripple obtained money transfer licenses in Texas and New York, allowing it to legally conduct capital transfer operations in these two states.
Two months later, the U.S. Securities and Exchange Commission (SEC) withdrew its lawsuit against Ripple, ending one of the longest legal disputes in the history of the crypto industry, which also allowed Ripple to refocus on business expansion.
At that time, crypto industry lawyer John Deaton stated that this decision was "the final exclamation point on XRP being viewed as a digital commodity rather than a security."
Additionally, the SEC welcomed a pro-crypto chairman — Paul Atkins' nomination was approved by the Senate on April 9. Once he is officially sworn in, he will replace Mark Yueda, who has served as acting chairman since January 20.
Related: Cryptocurrency exchange eXch to shut down over money laundering allegations
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