Ripple Prime Launches ‘Delta One’ as It Expands Into Equities Trading
Summary
- Ripple Prime said it is entering the stock trading market by launching Delta One, a total return swap (TRS) trading service for institutional investors.
- The company said Delta One uses stocks, equity indexes and cryptocurrencies listed on U.S. markets as underlying assets, with hedge funds, market makers and ETF issuers as its main clients.
- Ripple Prime said it secured the approval needed for the Delta One business from U.S. authorities earlier this year and formally launched the service last month, allowing it to expand its equities capabilities and client base.
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Ripple, the company behind XRP, is making a push into stock trading as it expands beyond crypto into traditional finance.
Bloomberg reported on August 27 that Noel Kimmel, president of Ripple Prime, the company’s prime brokerage unit, said its Delta One service marks the first step in that move into equity markets.
Delta One will offer institutional investors total return swaps tied to U.S.-listed stocks, equity indexes and cryptocurrencies. Its target clients include hedge funds, market makers and exchange-traded fund issuers.
A total return swap is a derivative that gives investors exposure to price moves in an underlying asset without directly owning it. Delta One is structured so that if the underlying asset moves 1%, the product’s value moves by a similar amount.
“Delta One is an important step in expanding Ripple’s equities capabilities,” Kimmel said. The service should help the company attract new clients while broadening the range of services existing customers use through Ripple Prime.
Ripple Prime secured the approval needed for the Delta One business from U.S. authorities earlier this year. It formally launched the service last month, Bloomberg reported.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul