Hidden Road is reporting that it has been granted registration as a digital asset firm in the UK by the Financial Conduct Authority (FCA). This enables Hidden Road to offer products in spot and derivatives of FX and digital assets. Hidden Road says it is the only prime broker with both an investment firm license and a digital asset firm registration in the UK.
The list of registered digital asset firms in the UK is available here.
Michael Higgins, Global Head of Business Development for Hidden Road, said the approval demonstrates their commitment to positively shaping digital asset markets:
“We are pleased that our UK digital asset operations will be overseen by a regulator as respected as the FCA, and we look forward to partnering with the authority to bring greater stability and institutional adoption to the asset class.”
Hidden Road adds that in testimony last month, the FCA noted that just 5% of the applications received were deemed fit for processing, and of those, only 27% were approved.
Matthew Walsh, Founding Partner at Castle Island Ventures and Hidden Road Inc. Board Member, said:
“Institutional investors are understandably asking many questions about digital assets. Among those questions are why there’s been so much doublespeak in this industry – ‘prime brokerage’ without credit intermediation, ‘unconflicted’ models that are in fact rife with conflict, firms who claimed to be ‘regulated’ yet were anything but. We strongly believe Hidden Road delivers a much-needed institutional and regulated prime broker for the industry. Securing approval from the FCA is very much in keeping with Hidden Road’s ethos and precisely what counterparties are looking for as the digital asset market collectively works to regain investor trust.”