Michael Higgins, the newly appointed International CEO of Hidden Road, shared insights into his expanded role and the evolving landscape of digital assets during an exclusive interview with Yam Yeshosua , Editor-in-Chief of Finance Magnates, at the London Summit (FMLS:24).
Moreover, he revealed Hidden Road’s plans to launch fixed income operations by early 2025, while expanding its multi-asset trading capabilities.
Fixed Income Push Next Year
Hidden Road's fixed income launch in early 2025 comes at an opportune moment for the industry. The outlook for the industry appears increasingly positive as inflation cycles turn and short-term interest rates are set to trend lower. With starting bond yields near post-financial crisis highs, there is significant potential for attractive total returns.
"There's a lot of demand for balance sheet from very large institutions," explained Michael Higgins, highlighting the strategic importance of servicing clients across both traditional finance and digital asset ecosystems
"Servicing them across traditional finance and digital asset ecosystems that have already converged presents a really unique opportunity for us in the marketplace,” he added.
A New Role in a Growing Firm
Higgins, who joined Hidden Road six years ago as Global Head of Business Development, also expressed his enthusiasm about taking on the position of International CEO.
"As the firm grew across multiple entities and verticals, the group CEO saw an opportunity to position me in this role," he explained. "I oversee several businesses, including our digital asset division."
Hidden Road operates as a prime broker specializing in providing cryptocurrency liquidity through over-the-counter (OTC) prime brokerage services. The firm introduced Route 28 a year ago, a Synthetic Prime Brokerage solution designed for OTC swaps, streamlining margin management and collateral efficiency.
“It's a multi-asset platform where counterparties can onboard with Hidden Road and not have to put their margin collateral in multiple different places," Higgins explained. The platform began with digital asset swaps and has expanded to include equity index swaps and CFDs, with plans to add commodities and rolling spot trading.
Additionally, Hidden Road has partnered with Finery Markets to develop an advanced OTC liquidity pool, enhancing access to deep, reliable liquidity for institutional clients.
Digital Asset Evolution and Institutional Adoption
The conversation quickly turned to the burgeoning institutional interest in cryptocurrencies. Higgins noted the increased participation from hedge funds and the slow but steady entry of banks into the space, despite regulatory constraints.
"We're starting to see more institutional adoption that requires certain infrastructure in the space to be built out," he explained. "The market infrastructure is starting to model a little bit. It's a blend between foreign exchange, equities and even a bit of derivatives."
Traditional finance's embrace of digital assets continues to gain momentum, particularly through conventional investment vehicles. Higgins emphasized the importance of infrastructure and regulation in driving this adoption. Highlighting the success of CME Bitcoin and Ether futures and the recent launch of Bitcoin ETFs in the U.S., he stated, "The appetite is there, and as the infrastructure grows, we'll see more adoption."
2025 Outlook and Key Developments
Looking ahead to 2025, the regulatory environment remains a key focus for Higgins, particularly in major markets.
"In continental Europe, MiCA is coming online. That's a big deal because you can passport throughout the continent," said Higgins.
He also notes that U.S. regulation continues to evolve, with oversight split between various authorities: "In the U.S., the debate continues over whether digital assets fall under the SEC or CFTC’s jurisdiction.”
As the discussion shifted to London’s role in the global financial ecosystem, Higgins acknowledged the growing appeal of more offshore locations like Dubai but reaffirmed London’s strengths. "
This is the center of the world. The regulators are strong, and the environment remains favorable for firms," he remarked. However, he noted that firms with global ambitions often seek a presence in multiple jurisdictions.
Higgins concluded by reflecting on the FMLS:24, calling it "one of the highlights of the year" and praising its ability to bring together industry leaders.
You can find many more interesting interviews from the London Summit under this link.
