Ripple Prime Moves Into Leveraged ETF Financing Through Swap Deals
Ripple is expanding into leveraged exchange-traded fund financing through its brokerage arm, Ripple Prime, by providing total return swaps that let funds track magnified daily stock moves. The company is set to earn a financing rate of about 8% on a Tradr 2X Long SNDK Daily ETF swap, according to a Wall Street Journal report. Ripple's 2025 acquisition of Hidden Road and its Delta One offerings have strengthened its push into traditional financial infrastructure.
Ripple Prime is using total return swaps to give leveraged ETFs exposure without the fund buying double the underlying shares. For a Tradr 2X Long SNDK Daily ETF swap, Ripple is reportedly set to collect roughly 8% annually—four points over banks’ overnight borrowing cost—on the position size, excluding ETF management fees.
The effort follows Ripple’s $1.25 billion purchase of Hidden Road in October 2025, which added clearing and execution across equities, bonds, currencies, and digital assets. Ripple later introduced Delta One services, cited over $1 billion in net capital, arranged $275 million in borrowing, and expanded ties with Brevan Howard.
This expansion could affect ETF investors, brokers, and crypto holders by tying leveraged products to a firm with crypto roots. If swap financing grows, market liquidity and trading costs may shift, while counterparty and leverage risks could draw regulatory attention. XRP holders might see sentiment effects, but the article notes no disclosed link between these activities and XRP or the XRP Ledger, so direct societal benefits remain uncertain.