Hidden Road, a prime broker enabling access to traditional and digital markets, has announced that its UK branch became a digital asset firm fully authorized by the Financial Conduct Authority (FCA Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term).

Hidden Road Gains FCA Authorization for Crypto License

According to the press release, Hidden Road Partners CIV UK Limited is the only prime brokerage company holding both the FCA's digital asset and investment firm licenses. As a result, the company can now offer unique derivatives and spot instruments for the cryptocurrency and traditional currency markets.

"We strongly believe Hidden Road delivers a much-needed institutional and regulated prime broker Prime Broker Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Read this Term for the industry. Securing approval from the FCA is very much in keeping with Hidden Road's ethos and precisely what counterparties are looking for as the digital asset market collectively works to regain investor trust," Matthew Walsh, the Founding Partner at Castle Island Ventures and a Board Member of Hidden Road, said.

The FCA has so far granted only 41 digital assets licenses. Only 5% of all applications received by the financial regulator were adequately prepared, of which only 27% were finally approved, Sarah Pritchard, the FCA's Executive Director for Markets, stated last month in her testimony before Parliament.

New Product and New Funding in 2022 for Hidden Road

The global credit network closed a $50 million Series A funding round in July. It was led by Castle Island Ventures and big crypto industry names like Coinbase Ventures, Citadel Securities and FTX Ventures.

Three months later, Hidden Road launched what it called the trading industry's first over-the-counter (OTC) prime brokerage service for digital assets. According to the company, the latest service reduces settlement, operational and credit risk. In addition, it offers institutional clients higher capital and operational efficiency. The acquisition of a digital asset license from the FCA is the culmination of Hidden Road actions undertaken in 2022.

In September, Hidden Road employed Andrew Rosoman as a new Partner. He brings to the table years of experience in the institutional FX industry. Rosoman, in his role, will be focused on strengthening the company's relationships and building new ones.