Hidden Road Partners, a rising star in the prime brokerage world with backing from financial giant Citadel Securities, is revving its engine for growth. The company is reportedly seeking $120 million in its Series B funding round, with its eyes set on a coveted $1 billion valuation.

This news comes courtesy of Bloomberg's well-placed sources, who shed light on Hidden Road's ambitious plans. The firm, established in 2018 by hedge fund veteran Marc Asch, has quickly carved a niche for itself. Its impressive Series A round, led by Castle Island Ventures and backed by industry heavyweights like Citadel Securities and FTX Ventures, fueled its initial success.

Hidden Road caters to a diversified clientele, offering prime brokerage services across foreign exchange, precious metals, and the increasingly prominent digital asset market. However, the company faced a recent hurdle in March 2024. Binance, a major cryptocurrency exchange, mandated stricter Know Your Customer (KYC) protocols for its partnering institutions, including Hidden Road.

This move by Binance reflects its commitment to regulatory compliance, particularly regarding US regulations that restrict access for American citizens. The new KYC requirements involve a more thorough vetting process, including verifying the geographical locations of Hidden Road's clients, founders, and staff. This ensures Binance's services remain compliant with US law.

By bolstering KYC procedures, Binance aims to create a transparent ecosystem for its partners. This collaborative effort fosters regulatory adherence while allowing institutions like Hidden Road to continue leveraging Binance's vast liquidity pool. As Hidden Road embarks on its Series B funding round, its focus on growth and its ability to adapt to evolving regulatory landscapes will be key factors to watch.