XRP ETFs Gain Ground as Repo Collateral in Schwab Money Fund
- Charles Schwab’s filing listed Grayscale, Canary, Franklin, and Bitwise XRP ETFs as repo collateral.
- JP Morgan and Bofa Securities are counterparties on five repurchase agreements totaling $3.99 billion.
- XRP ETF collateral increased from $35,973 in April to $8.32 million by August.
- The Schwab Prime Advantage Money Fund includes approximately 26,000 collateral items across its portfolio positions.
- August marked the first month all four major U.S. spot XRP ETFs appeared together in these filings.
The increase in XRP ETF collateral within Schwab’s money fund indicates a growing acceptance of these assets as standard inventory in the short-term funding market. This development is noteworthy given the thin institutional ownership of XRP ETFs and their significant paper losses earlier this year.
The rise from $35,973 to $8.32 million highlights a substantial growth in XRP ETF usage as repo collateral over a few months, reflecting changing dynamics in financial markets.(Source)
