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Ripple Entering Wall Street leveraged financing: providing funding for leveraged positions in Nvidia, SanDisk, and others ETF and moving into traditional banking business
According to BlockBeats,October 8，Ripple is entering the leveraged equity financing market through its Prime brokerage business Ripple Prime, providing financing services for leveraged positions in individual stocks such as Nvidia and SanDisk, as well as major indices,ETF and moving into a business area previously dominated mainly by major banks and securities firms.Ripple acquired 2025 in 1250000000 USD to acquire multi-asset Prime broker Hidden Road, thereby gaining clearing, financing, and trading capabilities in equities, bonds, foreign exchange, digital assets, and other markets.Ripple Prime can currently provide funds with leveraged exposure through total return swaps (TRS) and charge financing fees.
For example, Tradr 2X Long SNDK Daily ETF pays Ripple the overnight bank financing rate plus 4 percentage points, resulting in an annualized financing cost of approximately 8%at current rates, excluding ETF management fees.
Morningstar Direct data show that the U.S. market currently has 593 leveraged ETF with more than 256000000000 USD in assets under management, of which 426 track individual stocks. As banks face stricter capital and risk regulation, non-bank institutions such as Ripple Prime, Jane Street, and Clear Street are gaining more market space.Ripple launched its Delta One business this year,August offering total return swap products linked to U.S. equities, indices, and digital assets, and disclosed regulatory net capital exceeding 1000000000 USD。Ripple has not disclosed specific revenue from its leveraged ETF financing business, nor has it stated how much of that business uses XRP or XRP Ledger.
Original link https://m.theblockbeats.info/flash/370746