Ripple earns fees financing leveraged stock bets after $1.25 billion Hidden Road deal
Ripple has entered the prime brokerage market to finance leveraged stock bets and ETFs following its $1.25 billion acquisition of Hidden Road, challenging traditional Wall Street banks.
Ripple has started generating prime brokerage fees by financing leveraged equity bets, venturing directly into territory historically dominated by Wall Street banks. The crypto firm's $1.25 billion acquisition of prime broker Hidden Road opened access to a market where investment funds pay to amplify daily price movements in stocks such as Nvidia and Sandisk.[3][4][2]
Through its Ripple Prime unit, the company provides swap financing for leveraged exchange-traded funds, according to CoinGape. These activities include collecting financing fees of approximately an 8% annualized rate on Tradr's 2X Long SNDK Daily ETF. Nonbank entities like Ripple Prime are increasingly moving into the space as tighter risk rules and capital constraints reshape traditional banking operations.[5]
The Wall Street Journal reported that Ripple is expanding past its original focus on crypto payments to build out institutional trading, financing, and prime brokerage operations, according to trader Scott Melker. Crypto Briefing noted that Ripple's entry into prime brokerage could help bridge digital assets with traditional finance while improving liquidity and overall market integration.[1][2]
Key facts
- Ripple acquired Hidden Road in a $1.25 billion deal to expand into prime brokerage services.
- Ripple is now financing leveraged stock bets, competing directly with traditional Wall Street banks.
- The business funds bets designed to amplify daily price movements in stocks including Nvidia and Sandisk.
- Ripple Prime provides swap financing for leveraged ETFs, earning fees including an annualized rate of roughly 8% from Tradr's 2X Long SNDK Daily ETF.
- Nonbank firms like Ripple Prime are stepping in to provide financing as tighter capital and risk requirements alter traditional banking markets.
- The Wall Street Journal reported that Ripple is expanding beyond crypto payments into institutional trading, financing, and prime brokerage, according to Scott Melker.
Sources · 5 sources
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The Wolf Of All Streets@scottmelkerPost on X ·
THE WALL STREET JOURNAL SAYS RIPPLE $XRP IS BREAKING INTO WALL STREET, EXPANDING BEYOND CRYPTO PAYMENTS INTO INSTITUTIONAL TRADING, FINANCING AND PRIME BROKERAGE
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Crypto BriefingArticle ·
Ripple now earns prime brokerage fees after $1.25 billion Hidden Road deal Ripple's expansion into prime brokerage could significantly bridge traditional finance and crypto, enhancing liquidity and market integration. The post Ripple now earns prime brokerage fees after $1.25 billion Hidden Road deal appeared first on Crypto Briefing .
Open source - CO
CoindeskArticle ·
Ripple is earning fees financing leveraged stock bets, a business long run by banks The crypto company's $1.25 billion acquisition of Hidden Road has opened a corner of Wall Street where funds pay to amplify daily moves in stocks such as Nvidia and Sandisk.
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CoinDesk@CoinDeskPost on X ·
LATEST: @Ripple is now earning prime brokerage fees on leveraged equity trades after its $1.25 billion Hidden Road acquisition, competing directly with Wall Street banks. https://t.co/gcEurqGi2Y
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CoinGape@CoinGapeMediaPost on X ·
🔥 RIPPLE IS MOVING DEEPER INTO WALL STREET. @Ripple Prime is offering swap financing for leveraged ETFs, earning financing fees including roughly an 8% annualized rate from Tradr’s 2X Long SNDK Daily ETF. As tighter capital and risk requirements reshape the market, nonbank firms like Ripple Prime are stepping in to fill the gap. 🔗Know More:https://t.co/hBIT3iQOAy
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