Citadel-Backed Hidden Road Partners Targets $120M in Series B

Hidden Road Partners, Citadel Securities-backed prime brokerage, plans to raise $120 million in its Series B funding round, aiming for a market valuation of $1 billion.

According to a Bloomberg report, sources familiar with the matter, who requested anonymity due to the information sensitivity, stated that the Citadel Securities-backed prime brokerage firm is seeking to expand its offerings in the cryptocurrency and foreign exchange markets.

Hidden Road Seeks About $120 Million

The round is currently projected to raise about $120 million, according to two of the people. A Hidden Road representative declined Bloombergs request for comment.

Hidden Road was established in 2018 by Marc Asch, a former employee at Steven Cohens hedge fund firms SAC Capital and Point72 Asset Management. This firm quickly positioned itself in the financial market by securing $50 million during its Series A funding round.

The Series A was led by Castle Island Ventures. Notable investors in this round included Citadel Securities, FTX Ventures, Uncorrelated Ventures, Greycroft, XBTO Humla Ventures, Wintermute, Coinbase Ventures, among others.

Hidden Road offers prime-brokerage services across multiple markets, such as foreign exchange, precious metals, and digital assets.

Binance Requires Partners to Enhance KYC

In March 2024, Hidden Road Partners, alongside other prime brokers such as FalconX, was directed by Binance to enhance its Know Your Customer (KYC) processes.

The directive came as part of Binances broader strategy to comply with U.S. regulations, which prohibits U.S. nationals from using its services without proper registration.

Specifically, Binance required prime brokers to collect and verify extensive KYC details, including the geographical locations of their clients offices, founders, and staff. This information must be accurately verified to ensure compliance with the geographic restrictions imposed by U.S. law.

A spokesperson for Binance reiterated the exchanges dedication to transparency and regulatory compliance.

By reinforcing KYC protocols, Binance aimed to clarify the obligations of its partnering institutions, ensuring they align with its compliance framework and maintain access to its liquidity offerings.