Ripple has started providing financing for leveraged equity ETFs through Ripple Prime, collecting funding fees from trades in a business long dominated by major Wall Street banks and brokerage firms. The move follows Ripple’s $1.25 billion acquisition of multi-asset prime broker Hidden Road in 2025, which gave it the ability to clear trades, finance investment positions, and handle transactions across equities, bonds, foreign exchange, and digital assets. Ripple Prime is now offering leveraged exposure to stocks and indexes through total return swaps, allowing funds to amplify the daily moves of names such as Nvidia and SanDisk. One example cited was the Tradr 2X Long SNDK Daily ETF, which pays Ripple an overnight bank funding rate plus 4 percentage points, implying an annualized financing cost of about 8% at current rates. CoinDesk said the opening is coming as tighter bank capital and risk rules create more room for non-bank firms including Ripple Prime, Jane Street, and Clear Street. The U.S. market currently has 593 leveraged ETFs with more than $256 billion in assets under management.
Ripple is providing financing for leveraged equity ETFs through Ripple Prime and earning funding fees from those transactions, pushing into a business that has long been dominated by large Wall Street banks and securities firms, according to BlockBeats on Oct. 8.
That capability follows Ripple’s 2025 acquisition of multi-asset prime broker Hidden Road for $1.25 billion. The deal gave Ripple the ability to clear trades, finance investment positions, and process transactions across equities, bonds, foreign exchange, and digital assets.
Ripple Prime starts offering leveraged exposure through swaps
Ripple Prime has now begun offering funds leveraged exposure to stocks and indexes through total return swaps. The structure allows funds to magnify the daily price moves of individual names such as Nvidia and SanDisk, while Ripple collects financing fees.
One example is the Tradr 2X Long SNDK Daily ETF, which pays Ripple the overnight bank funding rate plus 4 percentage points. Based on current rates, that works out to an annualized financing cost of about 8%.
Leveraged ETF market size in the U.S.
The U.S. market currently has 593 leveraged ETFs with more than $256 billion in assets under management.
CoinDesk said tighter bank capital and risk requirements are creating more openings for non-bank firms to enter the market, including Ripple Prime, Jane Street, and Clear Street.
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