Ripple is expanding its presence in traditional finance through Ripple Prime, entering the leveraged exchange-traded fund (ETF) financing market and offering services typically provided by major Wall Street banks. The move marks another step in Ripple’s efforts to build a global institutional brokerage business beyond cryptocurrency payments.
Ripple is making a new push into Wall Street’s institutional financing business by providing funding and derivatives services to leveraged exchange-traded funds.
According to an October 7, 2026, report by The Wall Street Journal, Ripple Prime, the company’s institutional brokerage division, has begun financing leveraged ETFs that aim to deliver multiples of the daily performance of individual stocks and market indexes.
The expansion places Ripple in a market traditionally dominated by large investment banks and established securities firms.
One of the products using its services is the Tradr 2X Long SNDK Daily ETF, which seeks to deliver twice the daily performance of Sandisk shares.
Through this arrangement, Ripple can generate financing revenue by providing the derivatives exposure leveraged ETFs need to pursue their investment objectives.
The development follows Ripple’s $1.25 billion acquisition of Hidden Road and reflects its broader strategy of expanding into traditional financial markets.
Ripple Prime Enters the Leveraged ETF Financing Market
Ripple Prime’s latest expansion introduces the company to a segment of institutional finance that has historically relied heavily on major Wall Street banks.
Leveraged ETFs are investment products designed to deliver a multiple of the daily return of a particular stock, index, or other underlying asset.
For example, a fund targeting twice the daily performance of a stock aims to gain approximately 2% when the stock rises 1% during a single trading session, before fees and expenses.
However, the same leverage can magnify losses when the underlying asset declines.
Rather than buying all the shares needed to create this exposure, fund managers often use financial derivatives, including total return swaps.
These agreements allow funds to receive exposure to an underlying asset’s performance while paying financing costs and other agreed charges.
Ripple Prime is now participating in this process by providing financing and swap arrangements to leveraged ETF operators.
The move gives Ripple access to a business previously associated primarily with traditional investment banks.
Ripple Finances Tradr’s Leveraged Sandisk ETF
A notable example of Ripple Prime’s new business is its financing arrangement with the Tradr 2X Long SNDK Daily ETF.
The fund seeks to deliver twice the daily performance of Sandisk shares.
According to the reported arrangement, the ETF pays Ripple a financing rate calculated using an overnight bank funding benchmark plus an additional four percentage points.
This means Ripple earns financing fees for providing the derivatives exposure used by the fund.
The exact financing cost can change depending on the underlying benchmark and the terms of the arrangement.
The four-percentage-point spread represents the additional amount charged above the reference rate.
For Ripple, this creates another potential revenue stream within traditional financial markets.
However, the financing structure also introduces counterparty, collateral, and market risks that must be managed through the brokerage’s institutional operations.
The Sandisk arrangement provides a practical example of how Ripple Prime is expanding beyond cryptocurrency-related services.
How Ripple Prime’s Leveraged ETF Financing Works
To understand Ripple’s latest business, it helps to examine how leveraged ETFs obtain their market exposure.
A leveraged ETF typically aims to produce two or three times the daily return of an underlying stock or index.
Fund managers can use total return swaps to achieve this exposure without directly purchasing the full amount of underlying securities.
Under a total return swap, the fund receives an agreed economic return linked to the performance of the underlying asset.
In exchange, it pays financing costs and other contractual charges to the swap provider.
The financial institution providing the swap manages its own market exposure through appropriate hedging or other financial arrangements.
Ripple Prime now offers this type of service to institutional fund operators.
Its role is to provide financing and derivatives exposure, not to determine the fund’s investment strategy.
The ETF manager remains responsible for pursuing the fund’s stated daily investment objective.
Why Leveraged ETFs Carry Additional Risks
Leveraged ETFs can offer amplified exposure to short-term market movements, but their performance can differ significantly from investor expectations over longer periods.
Most leveraged ETFs reset their exposure daily.
As a result, their returns over several days or weeks may not equal a simple multiple of the underlying asset’s total return.
Daily compounding, market volatility, financing charges, and fund expenses can all influence performance.
For example, sharp price fluctuations can reduce a leveraged ETF’s value even when the underlying asset eventually returns to an earlier price.
These characteristics make leveraged ETFs more complex than conventional investment funds.
Ripple Prime’s involvement does not change these fundamental risks.
Instead, the company is supplying institutional financial services that help fund managers implement their strategies.
Ripple’s $1.25 Billion Hidden Road Acquisition Drives Expansion
Ripple’s entry into leveraged ETF financing became possible through its acquisition of institutional brokerage company Hidden Road.
Ripple initially announced the $1.25 billion acquisition in April 2025.
The transaction was completed in October 2025, after which Hidden Road was renamed Ripple Prime.
The acquisition gave Ripple an established institutional brokerage platform with operations across several financial markets.
These included cryptocurrencies, foreign exchange, derivatives, and fixed-income products.
Hidden Road had already built relationships with institutional investors seeking clearing, financing, and trading services through a single brokerage provider.
According to Ripple’s earlier disclosures, the business handled approximately $3 trillion in annual clearing activity.
Ripple subsequently reported that the brokerage had experienced significant growth following the acquisition announcement.
The Hidden Road transaction represented a major shift in Ripple’s business model.
While Ripple had previously focused heavily on blockchain-based payments and digital asset infrastructure, Ripple Prime expanded its role into conventional institutional financial services.
Ripple Prime Launches U.S. Equity Derivatives Services
Before entering leveraged ETF financing, Ripple Prime had already been expanding its capabilities in traditional securities markets.
In August 2026, the brokerage launched a Delta One business covering U.S.-listed equities, market indexes, and digital assets.
Delta One products are derivatives designed to provide economic exposure that generally tracks the performance of underlying assets.
Total return swaps are one example of these instruments.
Through its Delta One services, Ripple Prime allows institutional clients to obtain market exposure without directly holding the underlying securities.
The brokerage also manages related financing, collateral, and clearing requirements.
These capabilities are closely connected to the services now being offered to leveraged ETF managers.
The expansion demonstrates how Ripple Prime is using its existing derivatives infrastructure to enter additional institutional markets.
Ripple Prime Raises $275 Million for Brokerage Growth
Ripple Prime has also secured additional financing to support its expanding operations.
In August 2026, the company raised $275 million through a private placement of senior unsecured notes sold to institutional investors.
The funding was intended to support working capital and other corporate requirements as the brokerage expanded its regulated U.S. operations.
Credit rating agency KBRA assigned the notes a BBB investment-grade rating.
Piper Sandler acted as the lead placement agent.
However, Ripple did not publicly disclose the maturity date, interest rate, or identities of the participating investors.
The financing provided additional resources for the company’s brokerage, clearing, and institutional lending activities.
Ripple Secures Another $200 Million Financing Facility
The $275 million debt placement followed a separate financing arrangement announced in May.
Ripple Prime secured a $200 million facility from funds managed by Neuberger Berman.
Unlike the senior unsecured notes, the facility was designed to provide lending capacity that could be used in response to institutional client demand.
The financing supports margin-related services across multiple asset classes.
These include cryptocurrencies, equities, fixed income, and foreign exchange.
Together, the two arrangements gave Ripple Prime access to up to $475 million through different financing structures.
However, this figure represents financing capacity and capital raised through separate arrangements, not necessarily cash held or fully available for unrestricted spending.
The transactions highlight the funding requirements associated with operating a large institutional prime brokerage business.
Ripple Prime Serves More Than 300 Institutional Clients
Ripple Prime’s expansion is supported by an existing network of institutional customers.
According to company disclosures cited in the original report, the brokerage serves more than 300 institutional clients.
Its customer base includes hedge funds, proprietary trading firms, and liquidity providers.
The platform offers services such as trade clearing, settlement, financing, and cross-margining.
These capabilities allow institutions to manage financial transactions across different asset classes through a consolidated brokerage relationship.
Ripple also reported that the operation held more than $1 billion in regulatory net capital at the time of its August Delta One announcement.
The company described its equity derivatives activities as focused on financing and clearing rather than operating a proprietary trading or market-making desk.
This distinction helps explain the role Ripple Prime plays in leveraged ETF financing.
The brokerage provides financial infrastructure and derivatives arrangements to institutional customers rather than directly managing the ETFs themselves.
Ripple Expands Partnership With Brevan Howard
Ripple’s move into leveraged ETF financing follows another important institutional development.
On October 6, 2026, Ripple announced an expanded brokerage relationship with Brevan Howard, a global hedge fund manager overseeing approximately $35 billion in assets.
Under the agreement, Ripple Prime will provide prime brokerage, clearing, and financing services across traditional and digital asset markets.
The partnership is intended to give Brevan Howard’s investment teams access to multiple asset classes through Ripple Prime’s infrastructure.
Brevan Howard Group Chief Operating Officer Alan McGroarty said the platform was expected to improve trading operations and capital efficiency.
The expanded agreement builds on an existing financial relationship between the two companies.
Investment funds associated with Brevan Howard previously participated in Ripple’s strategic fundraising activities.
Ripple’s $40 Billion Valuation Highlights Institutional Interest
In November 2025, Ripple completed a $500 million strategic investment round that valued the company at approximately $40 billion.
The financing involved several prominent investment firms and financial market participants.
Investors included entities affiliated with Brevan Howard, Fortress Investment Group, and Citadel Securities.
Other participants included Pantera Capital, Galaxy Digital, and Marshall Wace.
The investment reflected institutional interest in Ripple’s broader financial technology operations.
Since then, Ripple has continued developing services that connect traditional financial infrastructure with digital asset markets.
Ripple Prime’s latest ETF financing activity fits into this strategy by expanding the company’s role in conventional securities markets.
However, private company valuations do not directly determine XRP’s market price or guarantee future financial performance.
Ripple Integrates RLUSD Into Institutional Brokerage Services
Ripple has also been connecting its institutional brokerage activities with its broader digital asset infrastructure.
One example is Ripple USD, commonly known as RLUSD.
Ripple Prime has incorporated the stablecoin into certain institutional services, allowing eligible clients to use RLUSD as collateral.
Stablecoin collateral can provide an additional option for managing financial obligations in supported digital asset transactions.
Ripple has also outlined plans to move some post-trade activities onto the XRP Ledger.
Such developments could eventually create closer connections between blockchain infrastructure and traditional financial market operations.
However, the leveraged ETF financing arrangements described in the Wall Street Journal report have not been identified as using XRP or RLUSD.
This is an important distinction because Ripple’s corporate expansion does not automatically translate into direct demand for its associated digital assets.
XRP Price Remains Under Pressure Despite Ripple’s Expansion
Ripple’s latest institutional announcement did not produce an immediate positive response in XRP’s price.
At the time of the October 8 report, XRP was trading near $1.40 after declining more than 5% over the previous 24 hours.
Technical indicators also suggested continued short-term market weakness.
According to the CoinLore analysis cited in the original report, XRP showed seven sell signals compared with five buy signals.
The imbalance indicated that bearish momentum remained a concern despite Ripple’s progress in institutional finance.
However, technical indicators can change quickly and should not be treated as definitive predictions.
XRP’s market performance is influenced by a wide range of factors, including cryptocurrency market sentiment, trading liquidity, investor demand, and broader economic conditions.
Ripple Prime’s expansion may strengthen the company’s business over time, but it does not guarantee that XRP will experience an immediate price increase.
Why Ripple’s ETF Financing Expansion Matters for Wall Street
Ripple Prime’s entry into leveraged ETF financing illustrates how digital asset companies are expanding into financial services traditionally dominated by established institutions.
Prime brokerage is a capital-intensive business that requires expertise in financing, risk management, collateral, clearing, and settlement.
Major banks have historically maintained strong positions in this market because of their financial resources and institutional relationships.
Ripple’s acquisition of Hidden Road provided an established platform through which it could compete for institutional clients.
By offering financing services to leveraged ETF managers, Ripple Prime is moving into a specialized segment of traditional securities markets.
This expansion could allow Ripple to diversify its revenue sources beyond cryptocurrency-related operations.
However, the company will still face competition from banks and securities firms with established financing businesses.
Its long-term success will depend on pricing, risk management, operational performance, client relationships, and access to capital.
What’s Next for Ripple Prime?
Ripple Prime is continuing to broaden its institutional financial services following the Hidden Road acquisition.
The company’s activities now span cryptocurrency brokerage, foreign exchange, fixed income, equity derivatives, and leveraged ETF financing.
Its expanded partnership with Brevan Howard and recently secured financing arrangements may support further growth.
Ripple is also exploring ways to connect parts of its institutional services with blockchain-based infrastructure.
However, no comprehensive timeline has been announced for moving all brokerage activities onto blockchain networks.
The company’s latest development suggests that traditional finance will remain an important part of Ripple’s strategy.
Further expansion will depend on institutional demand and the brokerage’s ability to manage the risks associated with its growing operations.
Final Thoughts
Ripple’s entry into leveraged ETF financing represents another significant development in its transition from a cryptocurrency-focused payments company into a broader institutional financial services provider.
Through Ripple Prime, the company is now offering financing and derivatives arrangements traditionally associated with major Wall Street banks.
The move builds on its $1.25 billion Hidden Road acquisition, its expansion into equity derivatives, and its growing relationships with institutional investment firms.
While the development could create additional business opportunities for Ripple, XRP’s immediate price performance remains uncertain.
For now, Ripple Prime’s growing role in traditional finance demonstrates the company’s ambition to compete in institutional markets while maintaining its connections to the digital asset industry.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial or investment advice. Leveraged ETFs and cryptocurrencies involve significant risks, and investors should conduct independent research before making financial decisions.
