Hidden Road Introduces Cash-Settled OTC Trading for US Institutional Investors
Cointelegraph reports that Ripple's newly acquired prime broker Hidden Road launched cryptocurrency swaps for institutional investors in the United States on May 28. The service allows US institutional clients to trade cash-settled over-the-counter swaps across multiple major crypto assets.
Hidden Road Partners, the company's entity regulated by the United Kingdom's Financial Conduct Authority, offers the new OTC swap product. According to Hidden Road's global CEO Michael Higgins, OTC swaps represent a significant portion of digital asset trading volumes globally but have been "largely unavailable to US institutions."
The launch represents Hidden Road's first major product introduction since Ripple announced its $1.25 billion acquisition deal in April 2025. Reuters confirmed this makes Ripple the first crypto company to own and operate a global, multi-asset prime broker.
Market Context and Trading Volume Growth
The institutional OTC crypto market experienced unprecedented growth in 2024. The Block reported that crypto OTC trading volumes increased by over 100%, driven by institutional demand and Donald Trump's election victory.
Finance Magnates noted that the fourth quarter of 2024 emerged as the strongest performer, achieving 177% year-over-year growth in total OTC volumes. Industry surveys suggest daily OTC trading figures now reach approximately $39 billion, with some liquidity providers estimating volumes exceeding $100 billion.
The OTC market has gained traction among institutional players seeking privacy and reduced market impact for large trades. Traditional financial leaders shifted their stance from skepticism to acceptance as the crypto industry matured, according to market analysis.
Regulatory Environment and Infrastructure Development
The regulatory landscape for crypto prime brokerage services has evolved substantially under the Trump administration. Mintz highlighted that President Trump's executive order on digital financial technology established a new framework for crypto asset policy, reversing prior administration approaches.
The SEC recently formed a crypto task force led by Commissioner Hester Peirce to develop comprehensive regulatory frameworks. SEC.gov announced the task force aims to provide clarity regarding registration requirements and practical solutions for market participants.
Hidden Road received a broker-dealer license from the Financial Industry Regulatory Authority following the Ripple acquisition announcement. The firm also secured a Markets in Crypto-Assets license in Europe, becoming one of the first companies to receive MiCA authorization after the framework entered full force in December 2024.
Broader Market Implications and Future Outlook
Hidden Road's OTC swap launch represents broader institutional infrastructure development in crypto markets. The firm clears $3 trillion annually across markets with more than 300 institutional customers, including hedge funds and asset managers.
Ripple CEO Brad Garlinghouse stated that the US market is "effectively open for the first time due to the regulatory overhang of the former SEC coming to an end." The acquisition positions Ripple to integrate Hidden Road's services with its RLUSD stablecoin and XRP Ledger blockchain infrastructure.
Industry experts anticipate continued growth in institutional crypto adoption throughout 2025. The combination of regulatory clarity, improved market infrastructure, and increased institutional comfort with digital assets suggests sustained momentum for OTC trading platforms.
The deal reflects a broader trend of crypto companies acquiring traditional financial services firms to bridge institutional and digital asset markets. As regulatory frameworks solidify and institutional demand grows, prime brokerage services are becoming central to crypto market evolution.
Related Reading on BTC Peers
For additional context on global cryptocurrency policy developments, readers can explore the Global Bitcoin Policy Index (GBPI). This comprehensive resource provides analysis of how different countries and jurisdictions approach Bitcoin regulation and adoption. The GBPI offers valuable insights into regulatory trends that directly impact institutional crypto trading and prime brokerage services, helping readers understand the global policy landscape that shapes market access and compliance requirements for firms like Hidden Road and their institutional clients.
