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Hidden Road Launches Crypto Swap Services for U.S. Clients Amid Ripple Acquisition

Ripple's acquisition of Hidden Road facilitates the launch of OTC cash-settled swaps, addressing institutional demand for crypto trading in the U.S.

Summary

Hidden Road has launched an OTC crypto swaps product for U.S. institutional clients, enabling cash-settled trades across major digital assets. This service, offered through its FCA-regulated UK entity, follows Ripple's $1.25 billion acquisition, enhancing access to previously limited OTC swap options for institutions. The initiative aligns with a 106% growth in institutional OTC volumes in 2023, reflecting rising demand for crypto trading solutions.

Terms & Concepts
  • OTC Swaps: Over-the-counter swaps are contracts traded directly between parties, allowing for more flexible terms compared to exchange-traded options.
  • Prime Brokerage: A service provided to hedge funds and other professional investors that includes trading, custody, and financing services.
  • Financial Conduct Authority (FCA): The regulatory body in the UK responsible for overseeing financial markets and protecting consumers.