Ripple Prime’s announcement reveals that its institutional prime brokerage platform has launched a new offering called Delta One, serving hedge funds, market makers, asset managers, and ETF issuers. The new product integrates U.S. equities, major indices, and crypto assets into a single institutional trading service, signaling its expansion beyond digital asset brokerage into traditional financial derivatives.
Offer total return swap products
According to the disclosure, the core product of the Delta One business is the total return swap (TRS), which allows institutional clients to gain exposure to price movements and dividend income without directly purchasing and holding the underlying assets. The initial coverage includes U.S.-listed equities, major stock indices, and crypto assets.
This arrangement is primarily designed for institutional investors seeking to consolidate their positions across multiple asset classes. The article states that clients can manage both equity and cryptocurrency exposures under a single prime brokerage relationship, rather than maintaining separate positions through different counterparties.
Stocks and cryptocurrencies are included in the same margin pool.
One of Ripple Prime’s key focus areas this time is bringing stock derivatives and crypto asset positions onto a single platform with unified margin management. According to the company, these services can operate through a single counterparty and a shared margin pool, with 24/7 availability.
Ripple Prime President Noel Kimmel said the service is a natural extension of the platform’s existing institutional offerings and aligns with client demand for cross-asset prime brokerage services. He noted that clients can access prime brokerage, clearing, and financing services for equities, foreign exchange, derivatives, fixed income, and digital assets through a single counterparty.
Launched with over $1 billion in regulatory net capital
The company disclosed that the Delta One business launched with over $1 billion in regulatory net capital, indicating that Ripple Prime has established a strong capital foundation to support the expansion of its institutional business.
The article also mentioned that Ripple Prime completed a $275 million private placement of senior unsecured notes earlier this month. Prior to this, the company secured a $200 million debt financing arrangement managed by Neuberger Specialty Finance. The additional funds will be used to support business expansion.
Currently, Ripple Prime states that its Delta One business will focus on three services: clearing, execution, and financing.
Additional information: The article describes Ripple Prime as Ripple’s institutional prime brokerage division, with this new initiative focusing on offering traditional equity derivatives and digital asset services on a single institutional platform.