Ripple Breaks Into Wall Street Leveraged Lending: Provides Funding for Leveraged ETFs of NVIDIA, SanDisk and Other Entities, Moves Into Traditional Banking Business

Ripple is entering the leveraged stock financing market through its prime brokerage arm Ripple Prime, providing financing services for leveraged ETFs betting on individual stocks like NVIDIA and SanDisk, as well as major indices, breaking into a business segment long dominated by large banks and securities firms. In 2025, Ripple acquired multi-asset prime brokerage firm Hidden Road for $1.25 billion, gaining clearing, financing, and trading capabilities across markets including stocks, bonds, foreign exchange, and digital assets. Ripple Prime currently offers funds leveraged exposure via total return swaps (TRS), charging financing fees for the service. For example, the Tradr 2X Long SNDK Daily ETF pays Ripple the overnight bank financing rate plus 4 percentage points; at current rates, the annualized financing cost is roughly 8%, excluding the ETF’s management fees. Data from Morningstar Direct shows there are currently 593 leveraged ETFs in the U.S. market, with over $256 billion in assets under management, 426 of which track individual stocks. As banks face stricter capital and risk regulations, non-bank institutions including Ripple Prime, Jane Street, and Clear Street are gaining more market share. Ripple launched its Delta One business in August this year, offering total return swap products linked to U.S. stocks, indices, and digital assets, and disclosed regulatory net capital exceeding $1 billion. Ripple has not disclosed specific revenue from its leveraged ETF financing business, nor has it clarified how much of this business uses XRP or the XRP Ledger.