Hidden Road, a global credit network for institutional investors, has launched its over-the-counter (OTC) prime brokerage for digital assets, for both US and international counterparties.
Hidden Road’s credit network facilitates OTC trading between market participants, with trades executed bilaterally between counterparties and intermediated by Hidden Road as the credit counterparty.
Hidden Road’s OTC prime brokerage will further institutional adoption of digital assets by giving counterparties full ownership and control over their execution technology, liquidity and custodian choice for both fiat and digital assets.
“Listening to our institutional counterparts, there was clear demand for Hidden Road to launch the first real prime brokerage solution for OTC trading of digital assets,” said Michael Higgins, Global Head of Business Development for Hidden Road.
“The market was in need of a truly conflict-free prime broker, one without a proprietary trading desk, OTC liquidity desk or market making operation. Hidden Road provides a credit network and a true prime brokerage solution for digital assets, encompassing margin netting, financing of trading and centralized market access to leading global OTC liquidity providers.”
In conjunction with Hidden Road’s support for exchange-traded products, the new OTC prime brokerage service enables true spread optimization for the buy side and brokerage communities, and a quicker, wider distribution channel for institutional market makers.
Employing a novel approach that nets positions across all liquidity providers and venues, the offering introduces new operational and capital efficiencies while reducing credit risk, settlement risk and operational risk.
Additionally, by increasing access to liquidity and expanding distribution, Hidden Road’s digital asset prime brokerage eliminates the need to onboard and negotiate multiple bilateral relationships.
The majority of the top 25 global liquidity providers are available on the platform. The initial liquidity providers on the platform include, but are not limited to (in alphabetical order):
- AlphaLab
- DV Chain
- Enigma Securities
- GSR
- FBG
- Flow Traders
- Da Vinci Derivatives
- OSL
- Portofino
- Profluent
- Virtu
- Wincent
- Wintermute
- XBTO Global
The following ISVs are supporting Hidden Road OTC (in alphabetical order):
- 4OTC
- CoinRoutes
- Elwood Tech
- Gold-i
- Reactive
- Talos
The following venues/ECNs are supporting Hidden Road OTC (in alphabetical order):
- 24x
- Crossover Markets
- Cypator
- Enclave Markets
- Finery Markets
- Spotex
Source: Hidden Road
