Hidden Road, a leading prime broker specializing in both cryptocurrency and traditional assets, has received an acquisition proposal, as reported by two individuals familiar with the situation.
Discussions are currently underway with a crypto-focused firm interested in purchasing Hidden Road, according to the sources, though it remains uncertain whether an agreement will be reached.
Hidden Road has chosen not to comment on the matter.
In the past year, the company has secured approximately $50 million from investors like the crypto venture capital firm Dragonfly Capital, one of the sources indicated.
One investor, a firm native to the crypto sector, has subsequently expressed interest in acquiring Hidden Road, the source added.
Dragonfly Capital did not reply to a request for comment by the time of publication.
Prime brokers play a crucial role in the infrastructure of financial markets, offering essential trading, financing, and custody services to major institutions.
Hidden Road completed a recent Series A funding round in July 2022, raising $50 million. This round was spearheaded by Castle Island Ventures and included contributions from Citadel Securities, FTX Ventures, Uncorrelated Ventures, Greycroft, XBTO Humla Ventures, Wintermute, SLN Capital, Profluent Trading, Coinbase Ventures, and Corner Capital.
The firm was reported to be considering various options, including a possible sale or a capital raise that could place its valuation over $1 billion, as per a Bloomberg report last month.