Hidden Road, the main brokerage company acquired by Ripple, obtained approval to operate as an American broker from the Financial Industry Regulatory Authority (FINRA), the company announced on Thursday.
The license, granted to its subsidiary Hidden Road Partners CIV US LLC, will allow the company to expand its fixed income prime brokerage platform, according to the press release. With broker status, the company plans to offer institutional customers a wider range of regulatory services in accordance with compensation, financing and brokerage of fixed income assets.
“”[This] is an important step in the development of the Hidden Road fixed income prime brokerage platform and strengthens our capacities in traditional financial markets, “said Noel Kimmel, president of the company, in a statement.
The development follows the announcement of Hidden Road earlier this month that it had concluded an agreement to acquire for $ 1.25 billion by Ripple, the Blockchain infrastructure services company closely associated with the XRP Ledger network (XRPL). The acquisition is subject to regulatory approval and is expected to close in the coming months.
Supported by Ripple’s resources, Hidden Road said it expects to evolve significantly and position itself as one of the largest non -banking first -rate brokers. The company also declared earlier that it planned to migrate its operations after trade on the XRPL network, aimed at reducing costs and rationalizing the regulation processes.
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