Ripple Broadens Wall Street Push With Financing for U.S. Leveraged ETFs
Summary
- Ripple Prime has entered the business of providing financing to U.S. leveraged ETFs.
- Ripple stepped up its prime brokerage business with its $1.25 billion acquisition of Hidden Road.
- The 2x Levered Long SanDisk Daily ETF pays Ripple an annual 8% fee, underscoring that Ripple’s Wall Street push is gaining speed.
Forecast Trend Report by Period
Ripple has entered the business of providing financing to U.S. leveraged exchange-traded funds, CoinDesk reported on Oct. 8, citing The Wall Street Journal.
Ripple Prime, the company’s prime brokerage unit, is supplying financing to leveraged ETFs that seek to deliver multiples of the daily returns of individual stocks and major indexes, according to the report.
Ripple stepped up the business after acquiring Hidden Road for $1.25 billion in October. Ripple Prime generates revenue by offering ETF issuers financial contracts that allow them to track stock returns at a multiple, collecting fees in return.
The 2x Levered Long SanDisk Daily ETF pays Ripple an annual fee of about 8%, the report said.
The business expansion is accelerating Ripple’s push into Wall Street. CoinDesk said tighter capital and risk-management rules for banks are creating opportunities for non-bank financial firms such as Ripple Prime to expand in the market.
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