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Ripple Prime Launches Stock Trading for Institutions

Created at 27 Aug · 1:16 PM1 source↑ Market-relevant
IN SHORT

Ripple Prime, the brokerage arm of Ripple, has launched a delta one business to offer institutional clients synthetic equity exposure to US stocks and indexes. The move expands Ripple Prime's services beyond crypto, FX, derivatives, and fixed income, aiming to bridge traditional finance and the digital asset industry.

Key Numbers

$275 millionprivate placement of senior unsecured notes
1%XRP price rebound in last hour
5%XRP price rebound in past 24 hours
$1.43current XRP price
$1.36XRP 24-hour low
$1.45XRP 24-hour high
8%XRP trading volume increase in last 24 hours
$28.14 millionspot XRP ETF inflows on Wednesday
$3.50 billiontotal XRP futures open interest

Who's Involved

Ripple Prime
brokerage unit of Ripple, launching stock trading
Ripple
crypto infrastructure giant and parent company of Ripple Prime
Noel Kimmel
president of Ripple Prime

↳ Why This Matters

The launch of stock trading by Ripple Prime signifies a significant step in integrating traditional financial markets with the digital asset space, potentially offering new avenues for institutional investors and further blurring the lines between TradFi and crypto.

Key facts

  • Ripple Prime, the brokerage unit of Ripple, has launched a delta one business.
  • The service enables institutional investors to gain synthetic equity exposure to US stocks and indexes.
  • This expansion moves Ripple Prime into equity markets, broadening its offerings beyond crypto, FX, derivatives, and fixed income.
  • The firm recently closed a $275 million private placement of senior unsecured notes to fund its business expansion.
  • Ripple aims to create a unified platform for traditional finance and the crypto industry.

Ripple Prime, the institutional brokerage arm of crypto infrastructure firm Ripple, has launched a delta one business, enabling clients to trade synthetic equity exposure in US stocks and indexes. This strategic expansion moves Ripple Prime into equity markets, broadening its offerings beyond its existing services in crypto, FX, derivatives, and fixed income. The firm aims to bridge traditional finance (TradFi) and the digital asset industry on a single platform.

Noel Kimmel, president of Ripple Prime, stated that the new offering is designed for market participants such as hedge funds, market makers, and ETF issuers. The launch allows investors to execute total return swaps on US stocks, indexes, and crypto assets without directly holding the underlying shares.

This expansion follows Ripple Prime's recent closure of an upsized $275 million private placement of senior unsecured notes. The firm indicated strong demand from institutional investors for this offering, with plans to invest the capital into its team and technology to bolster its position as a leading non-bank prime broker globally.

In parallel, the XRP cryptocurrency saw a price rebound of nearly 5% over the past 24 hours, trading around $1.43. Spot XRP ETFs experienced significant inflows totaling $28.14 million on Wednesday, with Bitwise, Franklin, and Canary ETFs leading the surge. XRP futures open interest also saw a slight increase, reaching $3.50 billion, though derivatives traders remain cautious ahead of monthly options expiry.

Frequently asked questions

Ripple Prime's delta one business allows institutional investors to trade synthetic equity exposure in US stocks and indexes through total return swaps.

Synthetic equity exposure provides the economic benefits of owning a stock or index without actually holding the underlying shares, often achieved through derivatives like total return swaps.

Ripple Prime recently closed a $275 million private placement of senior unsecured notes to support its business growth.

What Happens Next

01Ripple plans to invest capital into its team and technology.
02The firm aims to enhance its position as a global non-bank prime broker.
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How It Developed

Ripple Prime launched a delta one business for institutions.
The new business allows investors to execute total return swaps on US stocks, indexes, and crypto assets.
Ripple Prime secured $275 million in a private placement of senior unsecured notes.
The capital will be used to invest in team and technology.
Ripple aims to integrate traditional finance and the crypto industry on a single platform.

Sources

T1
BREAKING: Ripple Prime Launches Stock Trading with Delta One BusinessCoinGape

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