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 a target valuation of $1 billion. The firm aims to expand its services in the cryptocurrency and foreign exchange markets. Founded in 2018 by Marc Asch, a former employee of SAC Capital and Point72 Asset Management, Hidden Road previously raised $50 million during its Series A funding round, with investors including Citadel Securities, FTX Ventures, and Coinbase Ventures. The firm offers prime-brokerage services across various markets, including foreign exchange, precious metals, and digital assets.
In March 2024, Hidden Road Partners, along with other prime brokers like FalconX, received a directive from Binance to enhance their Know Your Customer (KYC) processes. This directive was part of Binance’s efforts to comply with U.S. regulations that prohibit U.S. nationals from using its services without proper registration. Binance required prime brokers to collect and verify extensive KYC details, such as the geographical locations of their clients’ offices, founders, and staff, to ensure compliance with U.S. law. By strengthening KYC protocols, Binance aimed to clarify the obligations of its partners and ensure adherence to its compliance framework while maintaining access to its liquidity offerings.
The current Series B funding round for Hidden Road Partners is expected to raise around $120 million, according to sources familiar with the matter. The firm has not provided a comment on this information. With a focus on expanding its offerings in the cryptocurrency and foreign exchange markets, Hidden Road aims to establish itself as a prominent player in the prime brokerage space. The firm’s previous success in securing funding and attracting notable investors positions it well to achieve its growth objectives.
Established by Marc Asch, Hidden Road Partners has quickly made a name for itself in the financial market since its inception in 2018. Asch’s background working at prominent hedge fund firms has provided him with the expertise and experience to lead Hidden Road in offering prime-brokerage services across various markets, catering to the needs of clients in foreign exchange, precious metals, and digital assets. The firm’s ability to secure significant funding during its Series A round and attract key investors has demonstrated its potential for growth and success in the industry.
By complying with Binance’s directive to enhance KYC processes, Hidden Road Partners and other prime brokers are aligning themselves with regulatory requirements and ensuring transparency in their operations. The emphasis on collecting and verifying extensive KYC details reflects a commitment to adhering to compliance standards and regulatory expectations. Binance’s dedication to regulatory compliance and transparency underscores the importance of maintaining strong KYC protocols in the financial industry, particularly in the context of cryptocurrency and digital asset trading.
As Hidden Road Partners seeks to raise $120 million in its Series B funding round, the firm’s focus on expanding its offerings in the cryptocurrency and foreign exchange markets reflects its commitment to growth and innovation in the prime brokerage space. With the support of investors like Citadel Securities and Coinbase Ventures, Hidden Road is well-positioned to achieve its objectives and establish a significant market presence. By complying with regulatory requirements and enhancing its KYC processes, the firm is demonstrating its commitment to transparency and regulatory compliance, essential factors in maintaining a strong reputation in the financial industry.
