Key Takeaways
- Ripple Prime’s Delta One business is now live for institutional clients.
- Total return swaps cover U.S. equities, indices, and digital assets.
- Ripple Prime reports more than $1 billion in regulatory net capital.
Ripple Prime Adds Delta One to Multi-Asset Brokerage
Ripple expanded its institutional brokerage business Aug. 27 with the launch of Delta One within Ripple Prime, adding equity derivatives to a platform already spanning foreign exchange, fixed income, derivatives, and digital assets. The Delta One offering is live for institutional investors including hedge funds, asset managers, and other financial institutions.
Clients can execute total return swaps tied to U.S.-listed equities, indices, and digital assets, according to Ripple. The offering also allows cross-margining across supported asset classes through a single counterparty relationship.
Ripple Prime President Noel Kimmel said:
“The launch of our Delta One business is an important development for Ripple Prime and a natural extension of the platform we’ve built.”
“Clients can now access equities, FX, derivatives, fixed income, and digital asset prime brokerage, clearing, and financing all through a single counterparty that is built for the future of finance: cross-asset, structurally aligned, 24/7. This is in line with what institutional market participants are asking for today, and we are proud to be the ones delivering it,” the executive added.
The expansion follows Ripple Prime’s U.S. digital asset spot prime brokerage launch in November, which added institutional OTC spot trading alongside swaps, futures, and options. The U.S. spot prime brokerage launch expanded Ripple Prime’s institutional trading capabilities.
Total Return Swaps Expand Market Access
Total return swaps provide economic exposure to an asset or index without requiring direct ownership. The Commodity Futures Trading Commission describes total return swaps as agreements in which payments depend on changes in the value of a specified asset, index, or related derivative multiplied by an agreed notional amount.
The structure can help institutions manage market exposure through derivatives while consolidating positions across supported asset classes. Readers unfamiliar with these instruments can review how crypto derivatives work and the structures commonly used in digital asset markets.
The platform has also expanded its role in institutional crypto derivatives as markets move toward continuous trading. Ripple Prime’s institutional derivatives operations span clearing and financing services.
Ripple Prime Builds Out Institutional Platform
Ripple said its Delta One operation differs from desks that combine derivatives services with market-making or proprietary trading businesses. The company said its operation focuses solely on clearing and financing flows.
The business developed from Ripple’s acquisition of Hidden Road, which was later rebranded as Ripple Prime. Ripple’s Hidden Road acquisition established the foundation for Ripple Prime’s broader institutional platform.
Delta One Launch Follows New Financing
The new business enters the equity derivatives market with more than $1 billion in regulatory net capital, Ripple says. On Aug. 18, Ripple Prime closed an upsized $275 million private placement of senior unsecured notes.
The $275 million senior notes offering was completed to support Ripple Prime’s continued growth and followed a $200 million debt facility obtained earlier in the year from funds managed by Neuberger Specialty Finance.
With Delta One live, institutional clients can access equities, indices, digital assets, foreign exchange, fixed income, and derivatives through Ripple Prime’s broader brokerage, clearing, and financing platform.
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