Hidden Road, the crypto prime brokerage, is considering selling the company or raising capital at a valuation of more than $1 billion and has already been working with a financial advisor, Bloomberg reported, citing “people with knowledge of the matter.” However, the company has yet to make any official announcements.
A Staggering Valuation for a Prime Brokerage
The New York-headquartered company also sought to secure $120 million at a valuation of about $1 billion last year. However, it remains unclear whether that round was completed. The company raised $50 million in a Series A funding round in 2022, which brought in investors like Ken Griffin’s market-making firm Citadel Securities and the venture arms of crypto firms Coinbase Ventures and Wintermute.
Prime brokerage firms like Hidden Road surged in popularity after the collapse of FTX, as they took on counterparty risk on behalf of clients in an asset class where traditional banks were absent.
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Ongoing Expansion
Founded in 2018, Hidden Road offers cryptocurrency liquidity through over-the-counter (OTC) prime brokerage. It also launched a comprehensive Synthetic Prime Brokerage solution for OTC swaps, called Route 28, and recently partnered with Finery Markets to introduce an advanced OTC liquidity pool.
It cleared trillions of dollars in the prime brokerage business across forex and digital assets last year, and the number of clients on the platform almost doubled in 2023.
The latest report came only weeks after the New York-headquartered company expanded its offerings with a fixed-income platform, which aims to improve market access and execution for institutional clients.
Last November, the company also promoted Michael Higgins as its International CEO. Higgins previously worked at FXCM, where he established a name in the forex industry.
This article was written by Arnab Shome at www.financemagnates.com.
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