Hidden Road Partners, a startup prime brokerage backed by Citadel Securities and other prominent crypto institutions, is raising new funds amid a resurgence in the cryptocurrency landscape. The startup focuses on cryptocurrencies and foreign exchange markets (forex) and aims for a $1 billion valuation.
According to a Bloomberg report, the firm seeks to raise approximately $120 million in a series B equity round. This round is expected to bring Hidden Road’s valuation to around $1 billion.
Founded in 2018 by Marc Asch, a former Steven Cohen’s SAC Capital and Point72 Asset Management employee, Hidden Road completed a $50 million series A funding round in 2022.
Notably, Castle Island Ventures led the round, which included investors such as Citadel Securities, FTX Ventures, Uncorrelated Ventures, Greycroft, XBTO Humla Ventures, Wintermute, and Coinbase Ventures.
What does crypto startup Hidden Road do?
Hidden Road provides prime brokerage services for various markets, including foreign exchange, precious metals, and digital assets. The firm gained more attention following the collapse of the FTX exchange, as it takes on counterparty risk on behalf of clients.
Additionally, Hidden Road offers financing services, which have been in high demand during the crypto market’s recovery from the 2022 credit crunch.
Recently, Binance asked Hidden Road and competitor FalconX to implement more stringent checks to keep US investors off the exchange. This request came in the aftermath of Binance’s plea deal with US authorities, which included paying $4.3 billion in fines.
The venture-capital investment environment has significantly improved for cryptocurrency companies, with VC investments in crypto startups reaching $2.5 billion during the first quarter of 2024.
This represents a 32% increase from the previous quarter. One notable recent deal involved Berachain, a blockchain platform started by pseudonymous founders, which closed a $100 million fundraising last week.
Overall, the renewed venture capital interest in cryptocurrencies suggests a positive outlook for the industry. This new wave of private investment could potentially propel the crypto total market cap to record levels as money inflows into the ecosystem, encouraging further development and awareness campaigns.
Furthermore, these investments may indicate a dominating positive sentiment for the mid-and long-terms, suggesting a bull market could be around the corner.
