A crypto investment firm backed by financial giant Citadel is reportedly expecting a $1 billion valuation after launching its latest fundraising round.
According to a new Bloomberg reportAnonymous people familiar with the matter say Hidden Road Partners, a startup prime brokerage focused on digital assets, is raising money in a Series B equity round that will bring its total valuation to nearly $1 billion.
According to Bloomberg, Hidden Road, which started in 2018 and completed a $50 million fundraising round in 2022, also provides services for other asset markets, such as precious metals and foreign exchange markets.
The report says prime brokers, such as Hidden Road and rival FalconX, have risen in popularity since the collapse of crypto exchange FTX in 2022 as they take on counterparty risk on behalf of clients.
FTX collapsed in November 2022 after its former CEO, Sam Bankman-Fried, was caught defrauding investors and mishandling billions of dollars of customer funds. He was sentenced to 25 years in prison earlier this year.
According to data aggregation platform Pitchbook, led by the new layer-1 blockchain Berachain (BERA), investments in crypto startups reached $2.5 billion in the first quarter of 2024, an increase of 32% compared to the fourth quarter of 2023 .
Berachain recently raised $100,000 in a Series B funding round with tech giant Samsung and several crypto venture capital firms, such as HashKey Capital, Animoca Ventures, and Nomad Capital.
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