Ripple has begun generating revenue from prime brokerage fees through its subsidiary, Ripple Prime. The unit, formerly known as Hidden Road, was acquired by Ripple for $1.25 billion in a deal that closed in October 2025. The company now focuses on financing leveraged equity products using total return swaps, a service traditionally dominated by banks.
The financing structure for these products is priced at the Overnight Bank Funding Rate plus 4%, which equates to approximately 8% on an annualized basis. Ripple Prime currently supports instruments such as the Tradr 2X Long SNDK Daily ETF. The broader US market for leveraged ETFs includes 593 funds with over $256 billion in assets under management.
Since the acquisition, Ripple Prime has expanded its operations to cover foreign exchange, derivatives, fixed income, equities, and digital assets. The platform processes over $3 trillion in annual clearing volume for more than 300 institutional clients. Reports indicate that Ripple’s business has grown threefold since the purchase.
As of late 2026, Ripple Prime reported holding over $1 billion in regulatory net capital. The company also announced a partnership with Brevan Howard for multi-asset brokerage on October 6, 2026. Ripple is currently utilizing its RLUSD stablecoin as collateral and intends to migrate specific post-trade activities to the XRP Ledger.
