Ripple Prime’s Path Into Institutional Brokerage

Ripple Prime operates as a multi-asset prime brokerage firm offering clearing, financing and access to derivatives across digital assets, equities, foreign exchange, fixed income and other markets. The platform, created after the October 2025 completion of Ripple’s $1.25 billion acquisition of Hidden Road, now serves more than 300 institutional clients including hedge funds, proprietary trading firms and liquidity providers.

The acquisition transformed Ripple’s business model from a focus on cross-border payments infrastructure into a full-service institutional provider. Hidden Road’s pre-existing clearing operations handled roughly $3 trillion in annual volume before the deal closed, and the figure has grown further under Ripple Prime’s management.

In August the brokerage raised $275 million through a private placement of senior unsecured notes rated BBB by KBRA, with Piper Sandler acting as lead placement agent. Earlier that year it secured a $200 million financing facility from Neuberger Berman. Together these arrangements provided up to $475 million in liquidity to support margin services and overall operations.

Ripple Prime also holds more than $1 billion in regulatory net capital, a figure disclosed in connection with its recent equity derivatives expansion. The business structure emphasizes financing and clearing rather than proprietary trading or market making.

Delta One Launches Equity Derivatives Capabilities

In August Ripple Prime introduced its Delta One offering, which supplies total-return swaps tied to U.S.-listed equities, major indexes and digital assets. Clients can obtain leveraged exposure to the daily performance of underlying securities without holding the actual assets outright. Ripple Prime manages the swap arrangements, collateral and related risk requirements through a single institutional relationship.

The platform now consolidates services for equities, foreign exchange, derivatives, fixed income and crypto, allowing institutions to trade across asset classes with one counterparty. This integrated approach has positioned Ripple Prime to support the complex financing needs of funds that rely on derivatives for amplified returns.

First Moves Into Leveraged ETF Swap Financing

Ripple Prime has begun acting as a swap counterparty for leveraged ETFs, enabling fund managers to secure the capital and exposure required for daily multiples of underlying stock or index performance. The Tradr 2X Long SNDK Daily ETF, for example, pays a financing rate equal to the overnight bank funding benchmark plus four percentage points, which translates to an annualized return of approximately 8 percent at current market conditions.

Similar arrangements are in place for funds tracking Nvidia shares and other major indexes. These transactions let ETF sponsors avoid direct ownership of large share positions while still achieving targeted volatility-adjusted returns. Ripple Prime earns financing fees on the swaps without taking proprietary positions in the underlying securities.

The leveraged ETF sector continues to grow rapidly, with 426 of the 593 funds focused on individual stocks. Ripple Prime’s entry into this area marks a direct challenge to the traditional prime brokers that have long controlled financing for these products.

Institutional Partnerships Strengthen Platform

Ripple Prime has expanded its relationship with Brevan Howard, a hedge fund manager with approximately $35 billion in assets under management. The updated agreement on October 6 provides prime brokerage, clearing and financing services across both traditional and digital asset markets. Brevan Howard Group Chief Operating Officer Alan McGroarty stated that the platform is expected to improve trading operations and capital efficiency for the firm.

Ripple Prime has also begun incorporating Ripple USD, or RLUSD, as eligible collateral for institutional clients. Plans exist to migrate certain post-trade activities onto the XRP Ledger, although the current leveraged ETF financing deals have not been identified as using the stablecoin or XRP.

The company’s U.S. regulated operations predate the Hidden Road acquisition, with the broker-dealer license obtained in April 2025 and over-the-counter cryptocurrency swaps introduced the following month through its U.K. entity.

Market Context and Broader Implications

Unlike traditional banks, Ripple Prime and other non-bank firms operate under different risk frameworks, which some industry participants view as an advantage in segments such as ETF financing where leverage and collateral dynamics require agile structuring. Noel Kimmel, president of Ripple Prime, has described the ETF financing space as an increasingly important growth area for the firm.

While the moves have drawn recognition in major financial media, including the Wall Street Journal’s reporting that Ripple has broken into Wall Street, the XRP price has shown limited immediate reaction, trading near $1.40 with mixed technical signals in the days following the announcement.

The expansion places Ripple Prime at the intersection of traditional finance and digital assets, offering institutions a single venue for both legacy markets and blockchain-powered services. As the brokerage continues to scale its derivatives and financing capabilities, it may attract additional funds seeking diversified, crypto-compatible infrastructure.