Hidden Road Partners is in talks with hedge funds and many of the top 20 global banks about providing access to trade or hedging their crypto risks, Bloomberg reported citing executives at the firm.
Last month, Hidden Road Partners completed a $50 million funding round last month that included Citadel Securities, as well as the investment arms of cryptocurrency exchanges FTX Trading Ltd. and Coinbase Global Inc.
This move by the prime brokerage startup is being seen to ease Wall Street's entry into crypto trading by tackling counterparty risks and conflicts of interest.
Managing counterparty risk has come at a critical time as the recent crypto downturn has led to the default of influential crypto hedge fund Three Arrows Capital (3AC) and crypto lenders and brokers such as Celsius Network Ltd. and Voyager Digital Ltd. filed for bankruptcy protection.
"Such credit risks could hamper traditional funds' interests in trading directly with cryptocurrency firms," Bloomberg said.
Ramnik...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...