Ripple Prime Secures Up to $200 Million Credit Facility From Neuberger Berman

Ripple has secured a credit facility of up to $200 million from global asset manager Neuberger Berman to expand prime brokerage and margin trading services for institutional investors.

Bloomberg reported on May 11 that Ripple Prime, the company’s prime brokerage unit, entered into an asset-based debt facility with Neuberger Berman’s specialty finance division.

The arrangement gives Ripple access to as much as $200 million based on institutional demand. The capital will be used to expand margin lending for trading in equities, bonds, foreign exchange and digital assets.

“The future of prime finance is supporting all major asset classes through a single structure and credit line,” Noel Kimmel, president of Ripple Prime, said.

Prime brokerage provides institutional investors with services such as financing, securities lending and custody. Ripple runs those services in foreign exchange and digital assets through a non-bank structure.

Competition in prime brokerage is intensifying as institutional investors expand into digital assets amid a more crypto-friendly policy backdrop, according to the market.

Ripple acquired prime brokerage firm Hidden Road for $1.25 billion last year. The deal was one of the largest acquisitions in the history of the digital-asset industry. Ripple later agreed to acquire treasury management software company GTreasury for $1 billion.

Separately, Ripple raised $500 million last year with backing from investors including Fortress Investment Group and Citadel Securities. The company was valued at about $40 billion at the time.