Hidden Road Expands Prime Brokerage Services with OTC Crypto Options

Hidden Road has expanded its prime brokerage services by adding support for over-the-counter (OTC) options on digital assets. The new offering allows institutions to execute OTC options and apply cross-margining with their other crypto holdings.

Launching the New Product with Industry Partners

Announced yesterday (Thursday), the crypto prime broker is partnering with QCP and BlockTech, who will serve as launch partners for the new service. The two digital asset platforms will provide liquidity and help institutions access structured and derivatives products.

“Historically, options trading in digital assets has been limited due to bilateral credit risk and the lack of cross-margining. That is no longer the case,” said Michael Higgins, International CEO and Global Head of Corporate Development at Hidden Road. He noted that it is the “first and only prime broker to support cross-margining across all major digital asset product types.”

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Growing Demand for Crypto Prime Brokers

Prime brokers play an important role in financial markets, including crypto, by offering services such as trading, custody, and lending to institutions like hedge funds, banks, and private equity firms.

According to the company, it clears $3 trillion annually across all markets and serves over 300 institutional clients.

Ripple agreed to acquire Hidden Road earlier this year in one of the largest deals in the crypto space. The $1.25 billion deal will be completed using a mix of cash, XRP tokens, and equity, and is expected to close in the coming months.

💥 BREAKING 💥 The acquisition of Hidden Road allows institutions like BlackRock to access a safer prime broker, enabling them to conduct more secure transactions directly on their balance sheets. @bgarlinghouse #XRP pic.twitter.com/pBmLak3dra

Speaking to FinanceMagnates.com, Higgins said the deal came together “pretty organically,” as “Ripple was well known to Hidden Road as a customer. Hidden Road was known to members of the Ripple management team. There was a natural relationship between our firms.”

Read more: “Hidden Road Has 20x More Balance Sheet Demand Than Supply; the Ripple Deal Solves This”

Earlier this year, Hidden Road also received approval from FINRA to operate as a broker-dealer in the US and an in-principle licence from the Abu Dhabi regulator. In addition, the platform is authorised by regulators in the Netherlands and the United Kingdom.