Ripple’s Acquisition Target: A Strategic Move to Establish a New Office in Abu Dhabi Led by James Stickland

Hidden Road, a brokerage specializing in both cryptocurrency and traditional assets, is set to establish an office in Abu Dhabi following an acquisition agreement with Ripple, as reported by two sources familiar with the situation.

James Stickland, a partner at the company, will oversee the new office, according to the sources, who requested anonymity due to the confidential nature of the matter.

The company itself has confirmed these expansion plans.

According to a press release shared with the public, Hidden Road has secured preliminary approval (IPA) from the Financial Services Regulatory Authority (FSRA) of ADGM for its operations in Abu Dhabi.

There is a potential for a member of the Abu Dhabi royal family to take a position on the board of the local branch once it obtains final regulatory clearance, one of the sources mentioned.

Following the final approval, Hidden Road will be allowed to provide clearing and prime brokerage services specifically for institutional clients within the UAE, the firm stated.

Other companies are also expanding in this region. Circle, known for issuing the USDC stablecoin, announced last month that it had garnered similar preliminary regulatory approval from Abu Dhabi, setting the stage for growth across the Middle Eastern market.

Prime brokers play a crucial role in financial markets by offering trading, financing, and custody solutions to larger institutional clients.

Stickland, previously the CEO of Elwood Technologies and Elwood Asset Management, a crypto firm supported by notable hedge fund manager Alan Howard, has been with Hidden Road for over a year, as reflected in his LinkedIn profile.

Ripple’s agreement to acquire Hidden Road for $1.25 billion last month stands as one of the most significant mergers and acquisitions in the digital asset sector to date.

Led by Brad Garlinghouse, Ripple announced that it would invest additional capital into Hidden Road to enhance its clearing, prime brokerage, and financing capabilities, with the aim of creating the leading non-bank prime brokerage globally.

Additionally, Hidden Road reported last month that it had gained approval from FINRA to function as a U.S. broker-dealer, which will bolster its fixed-income prime brokerage platform.