Ripple-Backed Hidden Road Unveils Crypto OTC Swaps Platform For US Institutions

The digital asset infrastructure provider Ripple is gradually actualizing its vision of becoming a powerhouse for institutional liquidity flows. The firm’s recently acquired prime brokerage platform, Hidden Road, has launched a crypto over-the-counter (OTC) service for institutions in the U.S.

According to an official release from Hidden Road, the brokerage will enable U.S. institutional clients to settle OTC swaps across leading cryptocurrencies with cash.

Hidden Road to Service U.S. Institutions

Institutions often use OTC trades to execute large transactions privately rather than on exchanges. This is to prevent huge price swings on open markets.

Hidden Road said its Financial Conduct Authority-regulated United Kingdom arm, Hidden Road Partners CIV UK Ltd., will handle the operations of the new OTC Swaps product alongside several crypto cross-margining and financing services.

Michael Higgins, International CEO and Global Head of Corporate Development for Hidden Road, said: “The United States digital asset market has long been under-served from a product standpoint. While OTC swaps represent a significant portion of digital asset trading volumes globally, until now, they were largely unavailable to U.S. institutions.

With the launch of our swap prime brokerage capabilities for the United States market, we can provide clients with access to an expanded range of products and solutions.”

Ripple’s Strategic Move

The latest announcement comes less than two months after Ripple acquired Hidden Road for $1.5 billion. Although the deal is expected to close in the coming months, Ripple, with its significant balance sheet, is supporting Hidden Road to expand its capacity and services. The brokerage firm aims to become one of the largest non-bank prime brokers worldwide.

While news of Ripple’s $1.25 billion play made the rounds early last month, CryptoPotato reported that the move was beyond a corporate deal. It was more about creating a pipeline for institutional flows into the XRP Ledger (XRPL) and the network’s native asset, XRP.

Further explanation by market experts revealed that the deal would enable Ripple to expand the XRP ecosystem from handling just retail remittances and enterprise payments to institutional treasury flows and liquidity management. With Hidden Road, which processes at least $3 trillion in volume yearly for more than 300 top market makers, hedge funds, and trading firms globally, Ripple is well on its way to evolving its payment ecosystem.