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Hidden Road, a global credit network for institutions
trading digital assets, announced it has added several exchanges to its
prime brokerage platform. The company also expanded the use of BlackRock’s
BUIDL token, accepting it as collateral across its network.
New Exchanges Join Hidden Road
In a press release today (Monday), Hidden Road stated that
it is now integrated with Coinbase International Exchange, following a tie-up
with Coinbase Exchange in 2022. Other new integrations include OKX, Deribit,
Bitfinex, Bullish, AsiaNext, and SIX Digital Exchange.
Michael Higgins, Hidden Road’s Global Head of Business
development, highlighted the significance of using BlackRock’s BUIDL token as
collateral. He noted that with current high interest rates, institutions
trading digital assets in large volumes are unlikely to ignore the
approximately 5% virtually risk-free return from holding a BlackRock money
market fund token.
Higgins pointed out that any non-carry asset faces
challenges when clients can use the BUIDL token as collateral while also
earning interest.
Hidden Road recognizes BlackRock’s tokenized fund BUIDL as collateralDigital asset prime broker Hidden Road Partners has expanded its brokerage platform to support major centralized exchanges (CEX) including Coinbase, OKX, Deribit, Bitfinex, Bullish, AsiaNext and SIX digital…
— CoinNess Global (@CoinnessGL) July 1, 2024
Broadening Platform Integration
Due to its existing partnership with the Chicago Mercantile
Exchange (CME), Hidden Road can also cross margin and margin finance digital
asset tokens such as BUIDL on the CME, Higgins added.
In addition to the new exchanges, liquidity providers B2C2,
IMC, and Laser Digital, along with software vendors Talos and TT, have also
joined Hidden Road’s platform.
“Previously, a client could only post bitcoin as collateral
and Hidden Road would provide margin financing to trade on the CME. But of
course the bitcoin didn’t earn interest. Now they can still do that, but they
could also post BUIDL as collateral and we’ll fund them dollars on the CME. The
difference is that with BUIDL, they earn interest,” Higgins said.
“As far as we
know, we are the only clearing firm that allows customers to post digital
assets as margin to trade on the CME.”
This article was written by Tareq Sikder at www.financemagnates.com.
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