- Hidden Road, backed by Ripple, launched crypto OTC swaps for U.S. institutional investors.
- The service fills a major gap in U.S. markets, where OTC crypto trading has been limited.
- Hidden Road also secured key licenses in both the U.S. and Europe after Ripple’s acquisition.
Ripple’s new prime brokerage arm, Hidden Road, just rolled out crypto swaps for institutional clients in the U.S. Yep, this marks a big step—these are cash-settled OTC (over-the-counter) swaps, and they’re aimed squarely at heavyweight investors. The announcement dropped on May 28, with Hidden Road saying clients can now trade across multiple major crypto assets without needing to touch an exchange.
These swaps are being offered by Hidden Road Partners, which falls under the UK’s Financial Conduct Authority (FCA). That’s the regulated entity handling the rollout, giving it a layer of oversight while the rest of the U.S. tries to figure out its crypto rules. It’s all part of the ripple effect (pun intended) from Ripple’s $1.25 billion deal to buy Hidden Road, which wrapped up earlier this year in April.
Why OTC Swaps Matter (Especially in the U.S.)
OTC crypto swaps aren’t your average trades—they’re done off the exchange, directly between parties. Usually, these are huge trades that, if dumped on an open exchange, would mess with prices. According to Hidden Road’s global CEO, Michael Higgins, this market has been growing globally but has kind of been a no-go zone for U.S. institutions. Now, with this launch, that changes a bit.
“The U.S. market has been seriously lacking in real product options,” Higgins said. No data was dropped about how much volume these OTC swaps move globally, but it’s probably not small. Finery Markets reported earlier this year that institutional OTC volumes were up 106% in 2023—so there’s some real movement happening.
Demand’s Been Picking Up—Here’s Why That Matters
Back in December, Higgins mentioned in an interview that major financial players are looking for proper infrastructure—especially when their traditional and digital balance sheets are overlapping more and more. Hidden Road seems to be trying to fill that gap, and this new swap offering is one of the first launches since Ripple made its big acquisition move.
Also, worth noting: not long after the acquisition announcement, Hidden Road scored a broker-dealer license from FINRA, giving it the green light to operate in U.S. markets. That’s kind of a big deal, since not every crypto firm gets that kind of access so easily.
Europe’s In the Mix Too
Hidden Road’s reach isn’t just U.S.-focused. In fact, it’s been doing some heavy lifting in Europe too. After the MiCA framework kicked in on Dec. 30, 2024, Hidden Road became one of the first to secure a license under the new European crypto rules. That one came from the Dutch regulator, and they announced the approval on Jan. 30.
So, between licenses in Europe, a FINRA nod in the U.S., and a deep-pocketed parent company in Ripple, Hidden Road’s setting itself up as a real player in the institutional crypto game. We’ll see if this OTC swap move is just the start.
