Ripple Acquisition Target Hidden Road Plans to Open New Office in Abu Dhabi

Ripple M&A Target Hidden Road is set to establish a new office in Abu Dhabi, as part of its recent acquisition deal with Ripple, specialized in crypto and traditional assets. Sources familiar with the situation revealed that James Stickland, a partner at Hidden Road, will lead the office, but this information was shared on condition of anonymity as it is a confidential matter.

The company, in a press release shared with CoinDesk, disclosed that they have obtained in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). Furthermore, there is a possibility that a member of the Abu Dhabi royal family may join the board of Hidden Road’s local entity once it secures final regulatory approval.

Upon securing the final approval, Hidden Road will be poised to deliver clearing and prime brokerage services to institutional investors within the United Arab Emirates. Notably, Circle, the issuer of the second-largest stablecoin, USDC, received in-principle regulatory approval in Abu Dhabi, indicating a broader trend of expansion among financial firms in the region.

Prime brokers play a crucial role in financial markets by providing essential services like trading, financing, and custody to prominent institutions operating in the sector. James Stickland, a seasoned professional formerly leading Elwood Technologies and Elwood Asset Management, which had billionaire hedge fund manager Alan Howard as a backer, joined Hidden Road approximately a year ago, according to his LinkedIn profile.

In an industry-shaping move, Ripple finalized the purchase of multi-asset prime broker Hidden Road for $1.25 billion, becoming one of the most significant mergers and acquisitions in the digital asset industry. Ripple, under the leadership of Brad Garlinghouse, plans to infuse new capital into Hidden Road to enhance its clearing, prime brokerage, and financing activities, with the ultimate goal of establishing the firm as the largest non-bank prime broker on a global scale.

Notably, Hidden Road secured FINRA approval to operate as a U.S. broker-dealer, further strengthening its fixed income prime brokerage platform. This strategic move aligns with Ripple’s vision to fortify its presence in the digital asset industry through strategic acquisitions and expansion efforts.