Hidden Road, a prime broker that focuses on both crypto and traditional assets, has received an inbound takeover approach, according to two people with knowledge of the matter.

Takeover talks are ongoing with a crypto native company that wants to acquire Hidden Road, the people said, but there is no certainty that any deal will be done.

Hidden Road declined to comment.

The company has raised about $50 million in the last 12 months, from investors including crypto venture capital firm Dragonfly Capital, one of the people said.

One of the investors, a crypto native firm, has since made an approach to buy Hidden Road, the person added.

Dragonfly Capital didn’t respond to a request for comment by publication time.

Prime brokers are an essential part of the plumbing of financial markets. They provide trading, financing and custody services to large institutions.

Hidden Road raised $50 million in a Series A funding round in July 2022. The round was led by Castle Island Ventures, with participation from Citadel Securities, FTX Ventures, Uncorrelated Ventures, Greycroft, XBTO Humla Ventures, Wintermute, SLN Capital, Profluent Trading, Coinbase Ventures and Corner Capital.

The company was said to be weighing options including a potential sale or capital raise that could value the firm at more than $1 billion, according to a Bloomberg report last month.