Hidden Road Partners, a startup prime brokerage focused on digital assets, is reportedly seeking a $1 billion valuation in its latest round of fundraising, according to anonymous sources cited in a Bloomberg report. The firm, which is backed by financial giant Citadel Securities, plans to raise funds through a Series B equity round to achieve this valuation.

Established in 2018, Hidden Road Partners previously completed a $50 million fundraising round in 2022. The firm also offers services for other asset markets, including precious metals and foreign exchange.

The report highlights the increasing popularity of prime brokerages like Hidden Road and its competitor FalconX, especially following the collapse of crypto exchange FTX in 2022. Prime brokerages assume counterparty risk on behalf of their clients, providing them with added security.

FTX faced a downfall after its former CEO, Sam Bankman-Fried, was found guilty of defrauding investors and mishandling billions of dollars in client funds. He has since been sentenced to 25 years in prison.

According to Pitchbook, a data-aggregating platform led by the new layer-1 blockchain Berachain (BERA), investments in crypto startup firms reached $2.5 billion in Q1 of 2024, marking a 32% increase from Q4 of 2023.

Recently, Berachain successfully raised $100,000 in a series B funding round, with participation from tech giant Samsung and several crypto venture capital firms such as HashKey Capital, Animoca Ventures, and Nomad Capital.

It is important for investors to conduct thorough research and due diligence before engaging in high-risk investments involving Bitcoin, cryptocurrency, or digital assets. Transfers and trades in these markets carry inherent risks, and any losses incurred are the responsibility of the individual investor. The Daily Hodl does not provide investment advice or act as an investment advisor. The publication solely participates in affiliate marketing.