Hidden Road Registers with UK’s FCA

Prime brokerage and credit intermediation challenger Hidden Road has been granted registration by the UK’s Financial Conduct Authority. The firm says it is the only prime broker with both an FCA investment firm license and an FCA digital asset firm registration, thus enabling it offer products in spot and derivatives of both FX and digital assets.

The registration in in the name of the firm’s UK entity, Hidden Road Partners CIV UK Ltd. The firm notes that currently, only 41 firms have been registered as digital asset firms by the FCA. In addition, it highlights UK parliamentary testimony in November by FCA executive director for markets Sarah Pritchard, who noted that just 5% of the applications received were deemed fit for processing and of those, only 27% were approved.

“Our institutional client base has long sought like-minded partners who embrace regulatory infrastructure, and this latest approval further demonstrates our commitment to positively shaping the digital asset markets,” says Michael Higgins, global head of business development for Hidden Road. “We are pleased that our UK digital asset operations will be overseen by a regulator as respected as the FCA, and we look forward to partnering with the authority to bring greater stability and institutional adoption to the asset class.”

Matthew Walsh, founding partner at Castle Island Ventures and Hidden Road Inc. board member, adds, “Institutional investors are understandably asking many questions about digital assets. Among those questions are why there’s been so much doublespeak in this industry – ‘prime brokerage’ without credit intermediation, ‘unconflicted’ models that are in fact rife with conflict, firms who claimed to be ‘regulated’ yet were anything but.

“We strongly believe Hidden Road delivers a much-needed institutional and regulated prime broker for the industry,” he continues. “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.”