Hidden Road Introduces OTC Prime Brokerage for Crypto

Hidden Road, a credit network for institutional investors, launched what it called the first over-the-counter (OTC) brokerage service for digital assets.

The launch comes three months after Hidden Road secured $50 million from its Series A funding round led by Castle Island and saw participation from crypto exchanges FTX and Coinbase, among others.

The new platform, which it says has already onboarded the majority of the world’s top 25 liquidity providers, is aimed at both US and international counterparties, Hidden Road announced in a press release on Thursday.

Michael Higggins, Global Head of Business Development at Hidden Road, explained that the platform is his response to demand for a “true, premier brokerage solution for OTC trading of digital assets” among institutional clients.

“The market needed a prime broker that was truly conflict-free, with no proprietary trading desk, OTC liquidity desk or market-making operation,” said the former FXCM senior executive.

“Hidden Road provides a credit network and true premier brokerage solution for digital assets, encompassing margin clearing, trade finance and centralized market access to the world’s leading OTC liquidity providers,” a- he added.

Unique characteristics?

According to Hidden Road, the new service reduces credit, settlement and operational risk and provides new operational and capital efficiencies for institutional investors.

The platform achieves this by rolling out a new method that nets positions across all liquidity providers and trading platforms, he noted.

Additionally, the platform “eliminates the need to integrate and trade multiple bilateral relationships” by improving access to liquidity and expanding distribution.

New platform support

Meanwhile, Hidden Road said liquidity providers such as Virtu, XBTO Global, AlphaLab, Enigma Securities and Da Vinci Securities, among others, are already on the platform.

The credit network has also secured support from six ISVs: CoinRoutes, Goid-i, 40TC, Eldwood Tech, Reactive, and Talos.

In addition, trading platforms and Electronic Network Communications (ECN) operators, such as 24x, Crossover Markets, Spotex, also support crypto-focused OTC prime brokerage.

Additionally, Cypator, Finery Markets, and Enclave Markets are the other ECNs that support the new OTC prime brokerage focused on digital assets, the credit network said.

Hidden Road explained that its objective with the new platform is to facilitate OTC transactions between market participants by acting as an intermediary and credit counterparty for transactions executed bilaterally by liquidity providers or counterparties.

“Hidden Road’s OTC prime brokerage will drive institutional adoption of digital assets by giving counterparties full ownership and control of their execution technology, liquidity, and choice of custodian for fiat and digital assets,” said explained the credit network.

Hidden Road, a credit network for institutional investors, launched what it called the first over-the-counter (OTC) brokerage service for digital assets.

The launch comes three months after Hidden Road secured $50 million from its Series A funding round led by Castle Island and saw participation from crypto exchanges FTX and Coinbase, among others.

The new platform, which it says has already onboarded the majority of the world’s top 25 liquidity providers, is aimed at both US and international counterparties, Hidden Road announced in a press release on Thursday.

Michael Higggins, Global Head of Business Development at Hidden Road, explained that the platform is his response to demand for a “true, premium brokerage solution for OTC trading of digital assets” among institutional clients.

“The market needed a prime broker that was truly conflict-free, with no proprietary trading desk, OTC liquidity desk or market-making operation,” said the former FXCM senior executive.

“Hidden Road provides a credit network and true premier brokerage solution for digital assets, encompassing margin clearing, trade finance and centralized market access to the world’s leading OTC liquidity providers,” a- he added.

Unique characteristics?

According to Hidden Road, the new service reduces credit, settlement and operational risk and provides new operational and capital efficiencies for institutional investors.

The platform achieves this by rolling out a new method that nets positions across all liquidity providers and trading platforms, he noted.

Additionally, the platform “eliminates the need to integrate and trade multiple bilateral relationships” by improving access to liquidity and expanding distribution.

New platform support

Meanwhile, Hidden Road said liquidity providers such as Virtu, XBTO Global, AlphaLab, Enigma Securities and Da Vinci Securities, among others, are already on the platform.

The credit network has also secured support from six ISVs: CoinRoutes, Goid-i, 40TC, Eldwood Tech, Reactive, and Talos.

In addition, trading platforms and Electronic Network Communications (ECN) operators, such as 24x, Crossover Markets, Spotex, also support crypto-focused OTC prime brokerage.

Additionally, Cypator, Finery Markets, and Enclave Markets are the other ECNs that support the new OTC prime brokerage focused on digital assets, the credit network said.

Hidden Road explained that its objective with the new platform is to facilitate OTC transactions between market participants by acting as an intermediary and credit counterparty for transactions executed bilaterally by liquidity providers or counterparties.

“Hidden Road’s OTC prime brokerage will drive institutional adoption of digital assets by giving counterparties full ownership and control of their execution technology, liquidity, and choice of custodian for fiat and digital assets,” said explained the credit network.

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