Amidst a surge in cryptocurrency valuations, a prime brokerage firm backed by Citadel Securities, Hidden Road Partners, is reportedly in the process of securing substantial funding, as per a Bloomberg report released on Wednesday.

According to sources familiar with the matter cited by the publication, Hidden Road Partners is targeting a formidable $120 million in a series B equity round, with aspirations of attaining a valuation of approximately $1 billion. The startup specializes in offering prime brokerage services catering to foreign exchange and digital asset markets, among other sectors.

Despite Bloomberg's attempts to reach out for comment, Hidden Road Partners has yet to respond to queries from The Block.

This forthcoming raise signifies a significant leap from the firm's previous funding round in 2022. During that period, investors injected $50 million into Hidden Road Partners. The injection came at a critical juncture, with the firm assuming a pivotal role in providing essential loan services amidst the collapse of major crypto lending platforms like Celsius and BlockFi.

The influx of investments into companies focused on the crypto sector has been notable this year. According to data from The Block Deals Dashboard, investments in such companies surpassed $1.4 billion last month alone, marking the highest monthly investment volume in crypto firms since September 2022.

This surge in funding underscores the growing confidence and interest in cryptocurrency-related ventures, with Hidden Road Partners positioned to capitalize on the momentum with its ambitious fundraising endeavor.