Financial Times: Some U.S. pension funds are providing financing support to cryptocurrency broker Hidden Road

ChainCatcher news, according to the Financial Times citing informed sources, some U.S. pension funds are providing financing support to the cryptocurrency broker Hidden Road. If the hedge funds financing the prime broker suffer significant losses, the prime broker or its investors may have to bear the costs.

Andrew Urquhart, a professor of finance and financial technology at Henley Business School, stated: "This is a very risky investment, and if my pension fund indicated that we would enter the cryptocurrency space, I would be very concerned."

Previous report, the digital asset and forex brokerage Hidden Road Partners completed a $50 million financing round last August, with participation from Citadel Securities, FTX Ventures, Coinbase Ventures, and others.

Hidden Road Partners was founded by Marc Asch in 2018 and previously collaborated with Steven Cohen's hedge fund SAC Capital and Point72 Asset Management. The company assumes counterparty risk on behalf of clients and cryptocurrency exchanges or market makers, allowing them to deposit dollars as collateral in a tripartite setup with custodians and receive profits and losses in dollars.