Ripple Expands Financing Services for Leveraged ETFs
- The annualized financing rate for leveraged ETFs is approximately 8%, separate from management fees.
- The U.S. market features 593 leveraged ETFs with total assets exceeding $256 billion.
- Ripple launched its Delta One business in August, focusing on total return swaps linked to U.S. stocks and digital assets.
- Ripple Prime has over $1 billion in regulatory net capital and completed a $275 million senior debt offering.
- An expanded agreement with Brevan Howard enables Ripple to offer brokerage and financing services across various asset classes.
As banks tighten capital requirements, nonbank firms like Ripple are stepping into the financing space for leveraged ETFs, which reset exposure daily and can be risky during market volatility.
Ripple’s new business model could generate significant fee income tied to stock trading, particularly as the company has not disclosed how much revenue comes from this segment yet.(Source)
