Key facts
- Ripple is offering swap financing for leveraged exchange-traded funds.
- Ripple Prime is supplying financing for leveraged stock ETFs.
- Ripple is collecting roughly an 8% annualized financing rate from Tradr 2X Long SNDK Daily ETF.
- The US market has 593 leveraged ETFs with over $256 billion in assets.
- Ripple acquired Hidden Road for $1.25 billion in 2025 to build Ripple Prime.
- Tighter capital and risk requirements for banks have created openings for nonbank firms like Ripple Prime.
Crypto firm Ripple is expanding its institutional services by entering the lucrative leveraged exchange-traded fund (ETF) financing market, according to a report by WSJ on October 8, 2026. Through its prime brokerage arm, Ripple Prime, the company is providing swap financing for leveraged stock ETFs, a business traditionally dominated by banks and securities firms.
Ripple Prime is earning financing fees, including an approximate 8% annualized rate on products like the Tradr 2X Long SNDK Daily ETF, and collects daily swap spreads from holders who keep positions longer than a single trading session. This move signifies Ripple's further diversification beyond cross-border payments and stablecoins into institutional market infrastructure.
The US leveraged ETF market comprises 593 funds holding over $256 billion, with 426 of these tracking individual stocks, according to Morningstar Direct data. Ripple Prime, built after the $1.25 billion acquisition of Hidden Road in 2025, aims to extend these services to other investment managers, including hedge funds.
Increased regulatory capital and risk requirements for traditional banks have created opportunities for nonbank entities such as Ripple Prime, Jane Street, and Clear Street to enter this financing space. Ripple Prime has also launched a delta one business for institutions, facilitating total return swaps on US stocks, indexes, and crypto assets. The company recently expanded its partnership with Brevan Howard to provide comprehensive prime brokerage services.
ETF Prime host Nate Geraci noted that leveraged ETF financing is a profitable venture for well-equipped firms, anticipating more alternative swap counterparties as traditional institutions face balance sheet constraints. The news of Ripple's entry into this market contributed to a 1% rise in XRP's price, which was trading near $1.41.