BrokerDealer – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Fri, 27 Jun 2025 08:37:59 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 BrokerDealer – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Dinari wins broker-dealer license to roll out tokenized stocks across US platforms https://earlybirdsinvest.com/dinari-wins-broker-dealer-license-to-roll-out-tokenized-stocks-across-us-platforms/ https://earlybirdsinvest.com/dinari-wins-broker-dealer-license-to-roll-out-tokenized-stocks-across-us-platforms/#respond Fri, 27 Jun 2025 08:37:59 +0000 https://earlybirdsinvest.com/dinari-wins-broker-dealer-license-to-roll-out-tokenized-stocks-across-us-platforms/

Dinari secured a US broker-dealer registration for its subsidiary, becoming the first platform cleared to offer blockchain-based shares of publicly traded companies to domestic investors, Reuters reported on June 26.

The San Francisco firm stated that it will activate the licensed entity during the next quarter, following completion of onboarding with the Securities and Exchange Commission (SEC). 

Dinari already distributes “dShares” on Coinbase’s Base network to users outside the US. The new clearance allows it to offer the same product to American brokerages and fintech apps through APIs rather than a direct-to-consumer portal.

CEO Gabriel Otte said the company has lined up undisclosed integration partners and will route trades to registered market centers while settling token issuances on a public blockchain.

Tokenized stocks

Tokenizing equities converts conventional shares into transferable digital tokens recorded on a blockchain. 

Proponents argue the structure trims clearing fees, accelerates settlement to near real-time, and supports round-the-clock trading. 

Dinari’s registration satisfies long-standing SEC requirements that secondary trading in securities, whether tokenized or not, run through licensed intermediaries. 

Coinbase and Kraken are also pursuing this approach. Kraken announced the launch of a 24/7 trading platform for US stocks, while Coinbase recently sought permission from the SEC to conduct the same offering. 

Competitive backdrop and remaining hurdles

Despite the push from companies to offer tokenized equities, hurdles persist. The World Economic Forum last month flagged shallow secondary-market liquidity and the absence of unified technical standards as chief obstacles to mainstream use.

Otte acknowledged those gaps but said Dinari’s on-chain settlement framework aims to provide a template regulators, and industry groups can reference when drafting interoperability guidelines.

Unlike retail brokerages such as Robinhood or Charles Schwab, Dinari embeds its trading and custody stack inside third-party platforms. 

Otte described the strategy as a “white label rails” model designed to let fintech firms bolt tokenized equities onto existing mobile apps without building blockchain infrastructure in-house. 

Dinari’s broker-dealer will begin customer testing after it finishes control-location attestations and vault integrations required under SEC Rule 15c3-3. The company stated that it would publish updated technical specifications for its ERC-20-based share contract before the US launch.

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]]> https://earlybirdsinvest.com/dinari-wins-broker-dealer-license-to-roll-out-tokenized-stocks-across-us-platforms/feed/ 0 44378 Ripple-owned Hidden Road secures as broker-dealer license to expand institutional reach https://earlybirdsinvest.com/ripple-owned-hidden-road-secures-as-broker-dealer-license-to-expand-institutional-reach/ https://earlybirdsinvest.com/ripple-owned-hidden-road-secures-as-broker-dealer-license-to-expand-institutional-reach/#respond Fri, 18 Apr 2025 09:10:49 +0000 https://earlybirdsinvest.com/ripple-owned-hidden-road-secures-as-broker-dealer-license-to-expand-institutional-reach/

Hidden Road, a digital asset and foreign exchange prime brokerage firm recently acquired by Ripple, has secured a broker-dealer license in the US, expanding its capabilities to serve institutional investors, the firm’s President, Noel Kimmel, told Bloomberg News.

The license enables Hidden Road to offer prime brokerage, clearing, and financing services across fixed-income assets to a broader range of customers. Kimmel said that the registration is a major step toward the company’s goal of becoming a full-service, non-bank brokerage across asset classes. 

The approval extends Hidden Road’s reach beyond digital assets and foreign exchange into traditional markets, including fixed income, where it recently became a Fixed Income Clearing Corporation (FICC) clearing member.

Hidden Road’s profile rose sharply after the 2022 FTX collapse, as institutional demand for prime brokerage services offering counterparty risk mitigation grew across the crypto sector.

The report noted that Hidden Road’s broker-dealer status enables it to offer fixed-income repurchase agreements, global funding services, and clearing capabilities across new asset classes later this year.

The move supports Ripple’s broader objective of offering enterprise-grade financial tools, spanning cross-border payments and advanced custody services, to institutional clients at scale.

Ripple acquisition and institutional expansion

Ripple announced its $1.25 billion acquisition of Hidden Road on April 8, describing it as the largest deal in its history. The acquisition positioned Ripple as the first crypto-native firm to own and operate a multi-asset prime brokerage platform with an established institutional network.

Ripple CEO Brad Garlinghouse called the transaction a “once-in-a-lifetime opportunity” to connect traditional financial markets with blockchain-powered ecosystems. 

Ripple said that Hidden Road’s infrastructure will accelerate institutional adoption of blockchain-based financial services, broadening its service offerings into trade clearing, financing, custody, and risk management.

Ripple plans to deploy its RLUSD stablecoin as collateral for cross-asset trades within Hidden Road’s brokerage services as part of the integration. Hidden Road will also use the XRP Ledger to facilitate faster trade settlements, aiming to cut settlement times from hours to minutes and reduce operational costs.=

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]]> https://earlybirdsinvest.com/ripple-owned-hidden-road-secures-as-broker-dealer-license-to-expand-institutional-reach/feed/ 0 31470 Hidden Road, Set to Be Acquired by Ripple, Wins U.S. Broker-Dealer License https://earlybirdsinvest.com/hidden-road-set-to-be-acquired-by-ripple-wins-u-s-broker-dealer-license/ https://earlybirdsinvest.com/hidden-road-set-to-be-acquired-by-ripple-wins-u-s-broker-dealer-license/#respond Fri, 18 Apr 2025 07:00:12 +0000 https://earlybirdsinvest.com/hidden-road-set-to-be-acquired-by-ripple-wins-u-s-broker-dealer-license/

Hidden Road, the prime brokerage firm that’s being acquired by Ripple, has obtained approval to operate as a U.S. broker-dealer from the Financial Industry Regulatory Authority (FINRA), the company said Thursday.

The license, granted to its subsidiary Hidden Road Partners CIV US LLC, will allow the firm to expand its fixed income prime brokerage platform, according to the press release. With the broker-dealer status, the firm plans to offer institutional clients a broader range of regulatory-compliant services in clearing, financing and prime brokerage of fixed income assets.

“[This] is a significant step in the development of Hidden Road’s fixed income prime brokerage platform and bolsters our capabilities in traditional financial markets,” Noel Kimmel, the firm’s president, said in a statement.

The development follows Hidden Road’s announcement earlier this month that it had entered into an agreement to be acquired for $1.25 billion by Ripple, the blockchain infrastructure services firm closely associated with the XRP Ledger (XRPL) network. The acquisition is subject to regulatory approval and expected to close in the coming months.

Backed by Ripple’s resources, Hidden Road said it expects to scale services significantly and position itself as one of the largest non-bank prime brokers. The firm also said earlier that it plans to migrate its post-trade operations onto the XRPL network, aiming to reduce costs and streamline settlement processes.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.

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