Citadel Securities-backed brokerage agency Hidden Road Partners plans to boost recent capital to bolster operations amid a bounce again in the cryptocurrency market.
The crypto and foreign exchange brokerage agency is seeking to elevate $120 million in Series B funding that can improve its valuation to $1 billion, Bloomberg reported citing unnamed sources. The firm gives brokerage companies to institutional purchasers in the crypto market, valuable metals, and international trade.
According to Bloomberg, Hidden Road Partners and FalconX gained momentum in the market after the collapse of the cryptocurrency trade FTX in 2022 due to counterparty danger undertaken by each corporations.
“Their services include providing financing, which has been much in demand as the crypto market recovers from the credit crunch left by the blowup of several lending firms in 2022.”
Hidden Road Partner’s $50 Million Funding
Founded in 2022 by Marc Asch, Hidden Road Partners raised $50 million in 2022 to spice up its operations. Citadel Securities, FTX Ventures, Greycroft, SLN Capital, Coinbase Ventures, and Capital Island Ventures backed the earlier funding spherical.
The firm plans to unravel fashionable issues in international prime brokerage and credit score intermediaries attributable to difficulties in elevating credit score. “Among these problems is the difficulty that institutional investors have in getting the credit and financing they need to trade efficiently across fragmented global markets.”
Crypto VC Move-In
This yr, crypto startups have recorded enormous participation from enterprise capitalists (VC) corporations because the market rebounds on the again of institutional traders. Following the approval of spot Bitcoin ETFs by the Securities and Exchange Commission (SEC), institutional inflows are at month-to-month highs earlier than latest liquidation.
These constructive sentiments led to elevated VC actions. According to information from PitchBook, VC investments hit $2.5 billion in Q1 2024. The second quarter has seen Berachain notch $100 million alongside different influx to different corporations.
Also Read: Are Institutional Investors Losing Interest In Ethereum?
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