Ripple Prime enters leveraged ETF financing, offering stock swap funding for leveraged funds.
Ripple Prime, Ripple's institutional brokerage arm, has started financing leveraged ETFs through stock swap arrangements, a service traditionally provided by major Wall Street banks. The firm finances funds like the Tradr 2X Long SNDK Daily ETF, charging a rate based on overnight bank funding costs plus four percentage points. This move expands Ripple's brokerage services beyond digital assets into equity derivatives and financing, supported by recent capital raises totaling $475 million. The development positions Ripple Prime as a growing player in institutional finance, although XRP's price showed little reaction to this expansion.
Ripple Prime, Ripple's institutional brokerage arm, has started financing leveraged ETFs through stock swap arrangements, a service traditionally provided by major Wall Street banks. The firm finances funds like the Tradr 2X Long SNDK Daily ETF, charging a rate based on overnight bank funding costs plus four percentage points. This move expands Ripple's brokerage services beyond digital assets into equity derivatives and financing, supported by recent capital raises totaling $475 million. The development positions Ripple Prime as a growing player in institutional finance, although XRP's price showed little reaction to this expansion.
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