Prime Broker Hidden Road Adds Major Crypto Exchanges, Expands Use of BlackRock’s BUIDL Token

As a seasoned crypto investor with a keen interest in institutional-grade digital asset trading, I’m thrilled to see Hidden Road’s latest moves. The acceptance of BlackRock’s BUIDL token as collateral across their network and the addition of major exchanges like Coinbase International Exchange, OKX, Deribit, Bitfinex, Bullish, AsiaNext, and SIX Digital Exchange to their prime brokerage platform is a game-changer.

Hidden Road, a leading global credit network for institutions specializing in digital assets trading, announced some significant additions to its prime brokerage platform. Notably, we welcomed several major exchanges on board. Additionally, we expanded our collaboration with BlackRock by accepting their BUIDL token as collateral across our entire network.

The company has recently established connections with several prominent exchanges: Coinbase International Exchange (previously linked through a partnership in 2022), OKX (together with Nitro Spreads), Deribit (including options), Bitfinex, Bullish (proprietor of CoinDesk), AsiaNext, and SIX Digital Exchange, as mentioned in a statement released on Monday.

With elevated interest rates prevailing, major players engaging in digital asset transactions worth hundreds of millions of dollars are unlikely to pass up the opportunity to earn approximately 5% virtually risk-free by holding a token representing a BlackRock money market fund. According to Michael Higgins, global head of business development at Hidden Road, any non-interest bearing asset becomes a harder sell when investors can utilize BlackRock’s BUIDL token as collateral and generate interest instead.

As a researcher studying the operations of Hidden Road, I’d describe it this way: Clients have the option to deposit BUIDL tokens with us as collateral. In return, we acknowledge this as sufficient margin for their trades. Simultaneously, we finance these transactions on designated exchanges using stablecoins like USDT or USDC. This setup allows clients to engage in trading activities while earning interest on their deposited assets.

Due to their current collaboration with the Chicago Mercantile Exchange (CME), Hidden Road has the ability to conduct cross-margin and margin financing for digital tokens like BUIDL on the CME, according to Higgins.

using BUIDL as collateral. The novelty lies in the fact that they receive funding in dollars on the CME while also earning interest with BUIDL. To our knowledge, Hidden Road is the sole clearing firm enabling such digital asset margin trading on the CME.

As a crypto investor, I’m excited to share that not only are new exchanges joining Hidden Road, but so are prominent liquidity providers like B2C2, IMC, and Laser Digital, as well as software vendors Talos and TT. These additions will undoubtedly enhance the platform’s capabilities and offerings for its users.