Hidden Road, a global credit network for institutions trading digital assets, announced it has added several exchanges to its prime brokerage platform. The company also expanded the use of BlackRock’s BUIDL token, accepting it as collateral across its network.

New Exchanges Join Hidden Road

In a press release today (Monday), Hidden Road stated that it is now integrated with Coinbase International Exchange, following a tie-up with Coinbase Exchange in 2022. Other new integrations include OKX, Deribit, Bitfinex, Bullish, AsiaNext, and SIX Digital Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term.

Michael Higgins, Hidden Road's Global Head of Business development, highlighted the significance of using BlackRock’s BUIDL token as collateral. He noted that with current high interest rates, institutions trading digital assets in large volumes are unlikely to ignore the approximately 5% virtually risk-free return from holding a BlackRock money market fund token.

Higgins pointed out that any non-carry asset faces challenges when clients can use the BUIDL token as collateral while also earning interest.

Hidden Road recognizes BlackRock's tokenized fund BUIDL as collateral

Digital asset prime broker Hidden Road Partners has expanded its brokerage platform to support major centralized exchanges (CEX) including Coinbase, OKX, Deribit, Bitfinex, Bullish, AsiaNext and SIX digital…

— CoinNess Global (@CoinnessGL) July 1, 2024

Broadening Platform Integration

Due to its existing partnership with the Chicago Mercantile Exchange (CME), Hidden Road can also cross margin and margin finance digital asset tokens such as BUIDL on the CME, Higgins added.

In addition to the new exchanges, liquidity providers Liquidity Providers A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi Read this Term B2C2, IMC, and Laser Digital, along with software vendors Talos and TT, have also joined Hidden Road’s platform.

“Previously, a client could only post bitcoin as collateral and Hidden Road would provide margin financing to trade on the CME. But of course the bitcoin didn't earn interest. Now they can still do that, but they could also post BUIDL as collateral and we'll fund them dollars on the CME. The difference is that with BUIDL, they earn interest,” Higgins said.

“As far as we know, we are the only clearing firm that allows customers to post digital assets as margin to trade on the CME.”