Ripple-Backed Hidden Road Launches Cryptocurrency OTC Swaps Platform for American Institutions

The digital asset infrastructure provider Ripple is progressively working towards its goal of becoming a leader in institutional liquidity. Following its recent acquisition of the prime brokerage platform Hidden Road, the firm has introduced a crypto over-the-counter (OTC) service aimed at institutions based in the U.S.

As detailed in Hidden Road’s announcement, this brokerage will allow U.S. institutional clients to execute OTC swaps across major cryptocurrencies using cash for settlements.

### Hidden Road’s Services for U.S. Institutions

OTC trades are frequently utilized by institutions for executing large transactions discreetly, mitigating the risk of significant price fluctuations in open markets.

Hidden Road indicated that its U.K. branch, regulated by the Financial Conduct Authority and operating as Hidden Road Partners CIV UK Ltd., will manage the new OTC swaps offering along with various crypto cross-margining and financing solutions.

Michael Higgins, who holds the positions of International CEO and Global Head of Corporate Development at Hidden Road, remarked that the product landscape for the U.S. digital asset market has not been adequately developed. He noted that, despite OTC swaps accounting for a substantial share of global digital asset trading volumes, they have largely been inaccessible to U.S. institutions until now.

He emphasized that the introduction of their swap prime brokerage capabilities for the U.S. market will allow clients to access a broader array of products and services.

### Ripple’s Strategic Initiative

This announcement follows Ripple’s acquisition of Hidden Road for $1.5 billion, which is anticipated to finalize in the upcoming months. With its robust financial position, Ripple is assisting Hidden Road in enhancing its capacity and offerings, positioning the brokerage to become one of the leading non-bank prime brokers globally.

While Ripple’s significant investment of $1.25 billion garnered attention last month, industry analysts have noted that the objective of this acquisition extends beyond mere corporate growth. It aims at establishing a pathway for institutional funding into the XRP Ledger (XRPL) and its native cryptocurrency, XRP.

Experts have further explained that this acquisition will allow Ripple to broaden the XRP ecosystem, expanding its scope from solely retail remittances and enterprise payments to include institutional treasury flows and liquidity management. With Hidden Road facilitating over $3 trillion in annual volume for more than 300 top market makers, hedge funds, and trading firms globally, Ripple is on track to advance its payment ecosystem significantly.