Ripple-Backed Hidden Road Secures U.S. Broker-Dealer License Ahead of $1.25B Acquisition

Hidden Road, the prime brokerage firm set to be acquired by Ripple, has received approval from the Financial Industry Regulatory Authority (FINRA) to operate as a U.S. broker-dealer through its subsidiary, Hidden Road Partners CIV US LLC. This regulatory green light will enable the firm to enhance its fixed income prime brokerage platform and expand its suite of institutional services in clearing, financing, and regulatory-compliant trading of fixed income assets.

Noel Kimmel, president of Hidden Road, stated that the approval represents a key milestone in the company’s mission to deepen its presence in traditional financial markets while enhancing its fixed income capabilities.

The news comes shortly after Ripple announced a $1.25 billion agreement to acquire Hidden Road, a move that underscores Ripple’s continued expansion into traditional finance. The acquisition, which remains subject to regulatory approval, is expected to close in the coming months.

Once the deal is finalized, Hidden Road plans to scale its operations significantly with support from Ripple’s infrastructure. The firm also aims to migrate its post-trade settlement processes to the XRP Ledger (XRPL), leveraging blockchain technology to streamline operations and reduce costs. This integration marks a major step in bridging traditional finance with blockchain-based infrastructure, positioning Hidden Road to become one of the largest non-bank prime brokers in the market.

The acquisition and licensing approval highlight Ripple’s strategic push to expand its footprint beyond crypto payments and into institutional finance, as blockchain adoption accelerates across the financial industry.