A crypto investment firm backed by financial giant Citadel is reportedly eyeing a $1 billion valuation after launching its latest round of fundraising.
According to a new Bloomberg report, anonymous people familiar with the matter say that Hidden Road Partners, a startup prime brokerage focused on digital assets, is raising funds in a Series B equity round that will bring its overall valuation to nearly $1 billion.
Per Bloomberg, Hidden Road, which began 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.
The report says that prime brokerages, such as Hidden Road and competitor FalconX, have been rising in popularity since the collapse of crypto exchange FTX in 2022 because they take counterparty risk on behalf of clients.
FTX collapsed in November 2022 after its former chief executive, Sam Bankman-Fried, was caught defrauding investors and mishandling billions of dollars worth of client funds. He was sentenced to 25 years in prison earlier this year.
According to data-aggregating platform Pitchbook, led by new layer-1 blockchain Berachain (BERA), investments into crypto startup firms reached $2.5 billion during Q1 of 2024, a 32% increase from Q4 of 2023.
Berachain recently raised $100,000 in a series B funding round that featured tech giant Samsung and several crypto venture capital firms, such as HashKey Capital, Animoca Ventures and Nomad Capital.
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