Hidden Road, a subsidiary of Ripple (XRP) and an important broker for both crypto and traditional assets, is taking a new step in his global expansion. It opens an office in Abu Dhabi.
This news comes shortly after Ripple concluded a takeover agreement with Hidden Road for no less than $ 1.25 billion. This is one of the largest deals in the digital asset industry so far.
Preliminary approval of the FSRA
The new Hidden Road office will be led by James Stickland. He is a partner at the company and former CEO of Elwood Technologies and Elwood Asset Management. According to sources, Hidden Road received a provisional approval (in-principle approach, IPA) from the Financial Services Regulatory Authority (FSRA) from the Abu Dhabi Global Market (ADGM). This provisional approval is an important first step. This allows Hidden Road to offer services to institutional investors in the VAE.
A striking detail is that a member of the royal family of Abu Dhabi may be able to join the board of directors of the local entity of Hidden Road. This would happen as soon as the final regulatory approval was obtained. The involvement of the royal family can considerably strengthen the position of Hidden Road in the region. The influence and appearance of these families in the VAE play an important role in this.
Strategic growth in a crucial market
As soon as Hidden Road receives the final approval, it will be authorized to offer clearing and prime brokerage services to institutional investors in the VAE. This is an important step. Prime Brokers play a crucial role in the infrastructure of financial markets. They offer trade, financing and storage services to large institutions.
Hidden Road is not the only company that expands in the region. Circle, the publisher of the second largest Stablecoin USDC, also recently received a provisional approval in Abu Dhabi. These movements show that the VAE is quickly developing into an important hub for digital assets. This is attracted by favorable regulations and a strategic geographical position.
It is striking that Ripple recently also tried to take over Circle. However, a first offer of $ 5 billion was refused. Whether the negotiations are currently ongoing is unknown.
Ripple, led by CEO Brad Garlinghouse, has clearly positioned itself with the acquisition of Hidden Road. This is for further growth in the sector. The crypto company has indicated that it will inject new capital in Hidden Road. The aim is to expand activities and to become the largest non-bank Prime Broker in the world.
Source: https://newsbit.nl/ripple-dochter-breidt-uit-naar-abu-dhabi-met-mogelijke-koninklijke-steun/
