Hidden Road Partners Seeks $120 Million Funding Round
Hidden Road Partners, a prime brokerage firm backed by Citadel Securities, is looking to raise $120 million in its Series B funding round with a target valuation of $1 billion. Sources familiar with the matter revealed that the firm aims to expand its services in the cryptocurrency and foreign exchange markets.
- The funding round is expected to raise approximately $120 million, according to insiders.
- Hidden Road, founded in 2018 by Marc Asch, a former employee of top hedge fund firms, secured $50 million in its Series A funding.
- The Series A was led by Castle Island Ventures, with participation from notable investors like FTX Ventures, Coinbase Ventures, and more.
- The firm offers prime brokerage services in various markets, including foreign exchange, precious metals, and digital assets.
Binance Enhances KYC Requirements for Partners
In March 2024, Binance, the leading cryptocurrency exchange, mandated prime brokers like Hidden Road Partners to strengthen their Know Your Customer (KYC) processes. This directive was part of Binanceโs efforts to comply with U.S. regulations and restrict access for U.S. nationals without proper registration.
- Prime brokers were required to collect and verify detailed KYC information, including the locations of clientsโ offices, founders, and staff.
- Compliance with geographic restrictions imposed by U.S. laws was emphasized in the KYC verification process.
- Binance reiterated its commitment to transparency and regulatory compliance through this initiative.
- By reinforcing KYC protocols, Binance aimed to ensure its partnering institutions align with regulatory requirements and maintain access to liquidity offerings.
Hot Take: Hidden Roadโs Funding Round and Compliance Initiatives
As Hidden Road Partners gears up for its Series B funding round, the prime brokerage firmโs focus on expanding its services in key markets like cryptocurrency and foreign exchange reflects the growing demand for institutional-grade financial services in the digital asset space.
Enhancing KYC processes in line with regulatory requirements, particularly set by leading exchanges like Binance, showcases a commitment to transparency and compliance within the industry.
Sources:
โ Bloomberg Report
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