Reports suggest that Hidden Road, a prime broker specializing in both crypto and traditional assets, has attracted interest from a potential acquirer, as per sources familiar with the situation.
Discussions regarding a potential takeover are currently underway with a crypto-native company looking to acquire Hidden Road, although there is no guarantee that a deal will materialize.
When approached for comment, Hidden Road declined to provide any statement.
Over the past year, the company has secured approximately $50 million in funding, with investors including crypto venture capital firm Dragonfly Capital, as per sources.
Following the investment, one of the investors, another crypto-native firm, has expressed interest in acquiring Hidden Road.
Despite multiple attempts, Dragonfly Capital did not respond to requests for comments at the time of publication.
Prime brokers play a crucial role in the infrastructure of financial markets by offering trading, financing, and custody services to large institutions.
In July 2022, Hidden Road raised $50 million in a Series A funding round, led by Castle Island Ventures, with contributions from Citadel Securities, FTX Ventures, Uncorrelated Ventures, Greycroft, XBTO Humla Ventures, Wintermute, SLN Capital, Profluent Trading, Coinbase Ventures, and Corner Capital, as reported by PR Newswire.
Recent reports indicate that the company is exploring various options, including a potential sale or capital raise that could potentially value the firm at over $1 billion, according to a Bloomberg report from last month.
