Ripple Prime begins financing leveraged equities ETF and charging fees
BIBIBI
AT A GLANCE
The report states that Ripple Prime is financing leveraged equities ETF and charging fees.
Article
Ripple enters leveraged equity financing through acquisition of Hidden Road, beginning to earn Wall Street-style brokerage fees
BlockBeats news,October 8, Ripple is using Ripple Prime to finance leveraged equity ETF and earn financing fees from related transactions, entering a business long dominated by major Wall Street banks and securities firms.
Ripple acquired multi-asset prime broker Hidden Road in 2025 for 1250000000 USD, gaining the ability to clear trades, finance investment positions, and handle transactions involving equities, bonds, foreign exchange, and digital assets. Now,Ripple Prime has begun providing funds with leveraged exposure to equities and indexes through Total Return Swaps.
This business allows funds to amplify the daily movements of individual stocks such as Nvidia and SanDisk, while Ripple collects financing fees. For example, Tradr 2X Long SNDK Daily ETF pays Ripple a fee equal to the overnight bank financing rate plus 4 percentage points. At current rates, the annualized financing cost is approximately 8%.
There are currently 593 leveraged ETF in the U.S. market, with assets under management exceeding 256000000000 USD. CoinDesk noted that as bank capital and risk-regulatory requirements become more stringent, non-bank institutions including Ripple Prime, Jane Street, and Clear Street are gaining more opportunities to enter this market.
Original link https://m.theblockbeats.info/flash/370803
Key points
01
BlockBeats reported that October 8, Ripple is using Ripple Prime to finance leveraged equities ETF and earn financing fees from related transactions.
02
Ripple acquired Hidden Road in 2025 for 1250000000 USD.
03
Following the acquisition, Ripple gained the ability to clear trades, finance investment positions, and handle transactions involving equities, bonds, foreign exchange, and digital assets.
04
Ripple Prime has begun providing funds with leveraged exposure to equities and indexes through Total Return Swaps.
05
Tradr 2X Long SNDK Daily ETF pays Ripple a fee equal to the overnight bank financing rate plus 4 percentage points; the original text states that, based on current rates, the annualized financing cost is approximately 8%。
06
The original text states that the U.S. market has 593 leveraged ETF, with assets under management exceeding 256000000000 USD。
07
CoinDesk noted that as bank capital and risk-regulatory requirements become more stringent,Ripple Prime, Jane Street, and Clear Street are gaining more opportunities to enter this market.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Simply put, funds can Ripple Prime use Total Return Swaps to amplify their exposure to movements in equities or indexes, while Ripple charges the funds financing fees. This extends Ripple’s business into traditional prime brokerage and equity financing.
Why it matters to readers
This business provides Ripple with an additional source of financing-fee revenue and shows that the prime brokerage capabilities it gained after acquiring Hidden Road have been used for leveraged equity ETF financing. The original text also indicates that this market has a substantial asset base and that non-bank institutions are gaining more opportunities to participate.
Beginners should note that leverage ETF amplifies daily movements, and financing fees also increase the cost of holding positions. The approximately 8%annualized financing cost cited in the article is an example calculated for a specific product based on rates at the time and does not represent all leveraged ETF。
Risks and unknowns
The material is a media report and does not include direct announcements from Ripple, Hidden Road, or the relevant funds.
The material does not specify Ripple Prime the actual number of funds served, transaction volume, or financing-fee revenue.
The material does not provide information on regulatory licenses or specific risk-control measures for the business.
The material does not state that the business has a direct connection with XRP.
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Approximately 8%'s annualized financing cost varies with the overnight bank funding rate.
Related concepts
Leverage ETF
This term is not in the glossary yet. Browse related concepts in the glossary.
