Ripple Prime Moves Further Into Leveraged ETF Swap Financing After $1.25 Billion Hidden Road Deal
AI Market Summary
Ripple, via Ripple Prime (formerly Hidden Road), is expanding into leveraged ETF total-return swap financing, a fee-dense segment historically dominated by banks but opening to nonbanks under tighter capital rules. The move broadens Ripple's institutional footprint beyond crypto into traditional prime brokerage, clearing and financing, highlighted by additional hedge-fund relationships. This can alter perceptions of Ripple's business mix and counterparty exposure tied to leveraged ETF volatility.
Impact level
● Medium
Affected assets
XRP/USDT-1.16%
AI Insight · XRP/USDTAI Insight
● Neutral
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Ripple is expanding its Wall Street leveraged ETF swap-financing business through Ripple Prime, a platform that came from its $1.25 billion acquisition of Hidden Road. Data cited by The Wall Street Journal show the U.S. has 593 leveraged ETFs with more than $256 billion in assets. The Tradr 2X Long SDNK Daily ETF pays Ripple fees that work out to roughly 8% of the fund’s assets on an annualized basis. The push underscores Ripple’s ongoing shift from a crypto-native company toward a provider of traditional financial-market infrastructure.
