Prime Brokerage Hidden Road, recently acquired by Ripple for $ 1.25 billion, has obtained a broker-dealer license from the Financial Industry Regulatory Authority (Finra)-a step that enhances its capacity in fixed income markets.
As a Finra Broker-Dealer, the hidden road can be further developed announced On April 17. This includes offering clients of institutional regulations that comply with clearing and financing services throughout the revenue security.
Finra membership is considered a significant commitment to investor compliance and protection. It also strengthens the registers of registers in the eyes of investment bankers, according to Telos capital advisorsa Dallas -based investment bank.
Hidden Road operates a major broker and credit network network, cleaning more than $ 10 billion in sunny transactions on behalf of more than 300 institutional clients. When it was established in 2018, the hidden road focuses on the main foreign exchange markets before expanding into digital ownership.
These strengths are positioned on the hidden road as a attractive -attractive acquisition for blockchain payment of network ripple, which The company eventually bought on April 8th.
Ripple’s chief technology official David Schwartz, The acquisition is described As a “momentary determination for the XRP ledger” by expanding cases of use of the layer of regulating throughout the traditional financial market.
Under the Ripple, Hidden Road will “expand its capacity to serve its pipeline and become the world’s largest non-bunched prime broker,” said CEO Brad G Brad Garlinghouse.
Related: Us to get the first ETF based on XRP, launching at Nyse Arca
The positive backdrop of regulation supports the expansion of the ripple
Ripple’s acquisition of Hidden Road came to the heel of a desired regulation backdrop in the United States following President Donald Trump’s election.
In January, Ripple Secured money transmitter license In both Texas and New York, which allowed the company to facilitate the transfer of capital within such states.
Two months later, the Securities and Exchange Commission (SEC) Lowered the lawsuit against rippleEnding one of the longest legal against crypto and positioning the company to re -focus on expansion.
At that time, Crypto attorney said John Deaton The decision is that the “final point of ejaculation (XRP token) is considered digital goods, not security.”
SEC is about to get a pro-crypto chair after Paul Atkins’s nomination has been approved Through the US Senate on April 9. When he swears, Atkins will take stones from Mark Yueda, who has served as the acting chairman since January 20.
https://www.youtube.com/watch?v=vb_u8wdose4
Related: The court provides 60-day SEC pause, case of appeal to ripple
