Hidden Road Partners, a prime brokerage firm backed by Citadel Securities, is in the process of raising $120 million in its Series B funding round with the goal of achieving a market valuation of $1 billion.
Sources familiar with the matter, who preferred to remain anonymous due to the sensitive nature of the information, revealed that Hidden Road Partners aims to expand its services in the cryptocurrency and foreign exchange markets.
The current estimation for the Series B funding round is $120 million, according to insider information. Despite Bloomberg’s request for comment, a representative from Hidden Road declined to provide any additional details.
Established in 2018 by Marc Asch, a former employee of Steven Cohen’s hedge fund firms SAC Capital and Point72 Asset Management, Hidden Road quickly made a name for itself in the financial industry by securing $50 million in its Series A funding round.
The Series A funding was led by Castle Island Ventures, with prominent investors such as Citadel Securities, FTX Ventures, Uncorrelated Ventures, Greycroft, XBTO Humla Ventures, Wintermute, Coinbase Ventures, among others.
Offering prime brokerage services across various markets including foreign exchange, precious metals, and digital assets, Hidden Road has positioned itself as a key player in the industry.
In March 2024, Binance issued a directive to prime brokers like Hidden Road Partners and FalconX, mandating the enhancement of their Know Your Customer (KYC) processes. This move was part of Binance’s strategy to comply with U.S. regulations and ensure that U.S. nationals are using their services in accordance with the law.
Specifically, Binance required prime brokers to collect and verify detailed KYC information, including the geographical locations of client offices, founders, and staff. This thorough verification process is crucial for compliance with U.S. laws governing geographic restrictions.
A spokesperson for Binance emphasized the exchange’s commitment to transparency and regulatory compliance.
By reinforcing KYC protocols, Binance aimed to clarify the responsibilities of its partnering institutions, ensuring alignment with its compliance framework and continued access to its liquidity offerings.
