Citadel’s Startup To Raise Valuation To $1 Billion Amid a Bounceback in The Crypto Market

Citadel Securities-backed brokerage firm Hidden Road Partners plans to raise fresh capital to bolster operations amid a bounce back in the cryptocurrency market. 

The crypto and forex brokerage firm is looking to raise $120 million in Series B funding that will increase its valuation to $1 billion, Bloomberg reported citing unnamed sources. The company offers brokerage services to institutional clients in the crypto market, precious metals, and foreign exchange.

According to Bloomberg, Hidden Road Partners and FalconX gained momentum in the market after the collapse of the cryptocurrency exchange FTX in 2022 because of counterparty risk undertaken by both firms.

“Their services include providing financing, which has been much in demand as the crypto market recovers from the credit crunch left by the blowup of several lending firms in 2022.” 

Hidden Road Partner’s $50 Million Funding

Founded in 2022 by Marc Asch, Hidden Road Partners raised $50 million in 2022 to boost its operations. Citadel Securities, FTX Ventures, Greycroft, SLN Capital, Coinbase Ventures, and Capital Island Ventures backed the previous funding round. 

The company plans to solve modern problems in global prime brokerage and credit intermediaries due to difficulties in raising credit. “Among these problems is the difficulty that institutional investors have in getting the credit and financing they need to trade efficiently across fragmented global markets.”

Crypto VC Move-In

This year, crypto startups have recorded huge participation from venture capitalists (VC) firms as the market rebounds on the back of institutional investors. Following the approval of spot Bitcoin ETFs by the Securities and Exchange Commission (SEC), institutional inflows are at monthly highs before recent liquidation.

These positive sentiments led to increased VC activities. According to data from PitchBook, VC investments hit $2.5 billion in Q1 2024. The second quarter has seen Berachain notch $100 million alongside other inflow to other firms. 

Also Read: Are Institutional Investors Losing Interest In Ethereum?