Ripple is expanding beyond digital-asset services and into leveraged equity financing through Ripple Prime, its prime brokerage business. The company is now providing financing for leveraged ETFs tied to single stocks such as Nvidia and SanDisk, as well as major indexes, entering a market that has long been dominated by large banks and securities firms. The move follows Ripple’s $1.25 billion acquisition of multi-asset prime broker Hidden Road in 2025, a deal that gave it clearing, financing, and trading capabilities across equities, bonds, foreign exchange, and digital assets. Ripple Prime is currently offering leveraged exposure to funds through total return swaps, or TRS, and collecting financing fees in return. One example cited was the Tradr 2X Long SNDK Daily ETF, which pays Ripple the overnight bank funding rate plus 4 percentage points, implying an annualized financing cost of about 8% at current rates, excluding the ETF’s management fee. Morningstar Direct data shows the U.S. market has 593 leveraged ETFs with more than $256 billion in assets under management, including 426 products tied to individual stocks. Ripple has not disclosed revenue from this business or how much of it uses XRP or the XRP Ledger.
Ripple is entering the leveraged equity financing market through Ripple Prime, its prime brokerage unit, providing financing for leveraged ETFs tied to stocks including Nvidia and SanDisk as well as major indexes. The business has traditionally been led by large banks and securities firms.
Hidden Road acquisition opened the door
Ripple acquired multi-asset prime broker Hidden Road for $1.25 billion in 2025, giving it clearing, financing, and trading capabilities across equities, bonds, foreign exchange, and digital assets.
TRS structure used to provide leverage
Ripple Prime is currently offering leveraged exposure to funds through total return swaps, or TRS, and charging financing fees.
For example, the Tradr 2X Long SNDK Daily ETF pays Ripple the overnight bank funding rate plus 4 percentage points. Based on current rates, that puts the annualized financing cost at about 8%, excluding the ETF management fee.
Size of the U.S. leveraged ETF market
Morningstar Direct data shows there are currently 593 leveraged ETFs in the U.S. market with more than $256 billion in assets under management. Of those, 426 track individual stocks.
As banks face tighter capital and risk rules, non-bank firms including Ripple Prime, Jane Street, and Clear Street are gaining more room in the market.
Delta One business launched in August
Ripple launched its Delta One business in August this year, offering total return swap products linked to U.S. stocks, indexes, and digital assets. It also disclosed more than $1 billion in regulatory net capital.
Ripple has not disclosed specific revenue from its leveraged ETF financing business, and it has not said how much of that activity uses XRP or the XRP Ledger.
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