Ripple Prime Moves Into Leveraged ETF Financing, a Market Banks Have Long Controlled

Ripple is now earning fees by financing leveraged stock ETFs, stepping into territory that big banks and securities firms have dominated for years. Its prime brokerage unit, Ripple Prime, provides funding to funds that multiply the daily moves of single stocks and market indexes, the Wall Street Journal reported Wednesday. Coindesk reported, Ripple got here through its $1.25 billion purchase of Hidden Road in October 2025, a multi-asset prime broker that clears trades, finances positions and handles stocks, bonds, currencies and digital assets.

How Total Return Swaps Power Leveraged ETFs

A fund promising twice the daily return of Nvidia usually signs a total return swap instead of buying double the shares. The broker supplies that exposure, normally hedges through stock purchases or other trades, and collects a financing fee. The Tradr 2X Long SNDK Daily ETF, tied to Sandisk, pays Ripple the overnight bank funding rate plus four percentage points, roughly 8% annualized, separate from the fund’s management fee.

Risks and Unanswered Questions for Ripple

Because these ETFs reset exposure daily, sharp stock swings can hurt financiers if fund assets cannot cover losses. Ripple has not said how much revenue the business earns or how much of it involves XRP or the XRP Ledger.