Nasdaq-Listed Hilbert Group Acquires Liberty Road Capital and Partners with Xapo Bank to Expand Crypto Offerings

Hilbert Group, a Nasdaq-listed digital asset management firm, has made significant strides toward expanding its influence in the evolving crypto landscape. The company recently announced the acquisition of Liberty Road Capital (LRC), a leading digital asset manager, and a strategic partnership with Xapo Bank, a licensed Bitcoin custodian. These moves reflect Hilbert’s commitment to positioning itself as a major player bridging traditional finance (TradFi) with the burgeoning digital asset economy.

Strategic Acquisition of Liberty Road Capital

As part of its expansion strategy, Hilbert Group will acquire LRC, which has built a solid reputation in digital asset management with $110 million in assets under management and a robust AI-powered trading engine. The acquisition, which is set to close in January 2025, will see Hilbert Group take control of all of LRC’s business agreements, intellectual property, and key personnel. This strategic purchase will boost Hilbert Group’s total managed capital to over $450 million, solidifying its presence as a leading crypto asset manager.

LRC's integration into Hilbert Group will bring an added quantitative edge to the firm’s operations. LRC's AI-driven technology is essential for its trading strategies and will complement Hilbert’s existing data analytics and systematic asset management approach.

Partnership with Xapo Bank and Launch of Bitcoin Credit Fund

Hilbert Group’s partnership with Xapo Bank is another major development. The firms have launched the BTC-denominated Xapo Byzantine BTC Credit Fund, an institutional-grade fund designed to generate yield for clients holding substantial Bitcoin balances. The fund, initiated with approximately 3,500 BTC, will be managed by Hilbert Capital, the asset management division of Hilbert Group. The collaboration with Xapo Bank, a licensed private bank and Bitcoin custodian, enhances Hilbert Group’s ability to offer secure, compliant services to institutional clients looking to generate returns from their Bitcoin holdings.

Expanding Crypto Offerings and Assets Under Management

Hilbert Group’s recent acquisitions and partnerships are part of a broader strategy to expand its offerings and target growth beyond $1 billion in assets under management by mid-2025. The firm is poised to expand into market-making and arbitrage strategies, further solidifying its role in the crypto asset management space. Its listing on Nasdaq has already raised the firm’s profile, attracting attention in a market that is increasingly seeking institutional-grade participants.

The firm’s approach is deeply rooted in quantitative methods, risk management, and data-driven insights, allowing it to navigate the volatility and technological instability often seen in the digital asset sector. Hilbert’s leadership has emphasized a “defensive” strategy, particularly in terms of leveraging risk management and ensuring infrastructure reliability.

Leadership Changes and Future Outlook

As Hilbert Group charts its course for future growth, the company is also undergoing leadership changes. Co-founder and current CEO Niclas Sandström will step down at the start of 2025, and Barnali Biswal, the company’s current chief investment officer, has been appointed as the new CEO. Biswal brings a wealth of experience, having spent 14 years at Goldman Sachs and later at a multi-strategy quantitative crypto hedge fund.

Looking ahead, Hilbert Group has a clear vision for the future. The firm believes that tokenization will become the backbone of the financial ecosystem, with most real-world assets being tokenized and transacted on blockchain platforms. This shift, combined with advancements in AI and smart contract technology, will revolutionize financial systems and information flows. By positioning itself at the intersection of traditional finance and crypto innovation, Hilbert Group aims to capitalize on this transformation.

A Future at the Crossroads of TradFi and Crypto

Hilbert Group’s strategic acquisitions, partnerships, and leadership changes underline its commitment to shaping the future of finance. By blending rigorous quantitative methods, robust risk management, and forward-thinking product development, Hilbert is preparing to lead the way in a rapidly changing market. The firm’s vision of merging TradFi with crypto markets and leveraging AI and smart contracts sets the stage for a more integrated, efficient, and innovative financial future. With ambitious growth targets and a defensive stance against market volatility, Hilbert Group is well-positioned to thrive in the evolving digital asset ecosystem.