Ripple Secures Prime Brokerage Fees in $1.25 Billion Hidden Road Deal

Ripple is now generating revenue from prime brokerage fees on leveraged stock trades, a move facilitated by Ripple Prime, the rebranded entity formerly known as Hidden Road. The cryptocurrency firm acquired the multi-asset prime broker for $1.25 billion, integrating a business with deep roots on Wall Street but minimal presence in the crypto space.

Prime Brokerage Fees Emerge from Leveraged Equity

By October 2026, Ripple Prime had begun to book revenue from prime brokerage fees, primarily focusing on financing leveraged equity products. The core instrument employed for this strategy is the total return swap.

Essentially, a total return swap functions akin to renting a stock rather than outright purchasing it. One party assumes the full spectrum of gains and losses associated with a particular stock or index. The other party, in this case Ripple Prime, provides the necessary financing and receives a fee in return.

An illustrative example is the Tradr 2X Long SNDK Daily ETF, a fund designed to deliver compounded returns linked to the performance of Sandisk shares. Ripple Prime underpins this structure by providing the financing.

The pricing for these arrangements is set at the Overnight Bank Funding Rate (OBFR) plus 4%. OBFR serves as a benchmark for short-term interbank lending. On an annualized basis, this translates to an approximate rate of 8%.

The market for such products is substantial. In the United States alone, there are 593 leveraged ETFs with over $256 billion in assets under management. Each of these funds requires a counterparty for its swaps, a role fulfilled by prime brokers.

Ripple initially announced its intention to acquire Hidden Road on April 8, 2025, with the $1.25 billion transaction concluding in October 2025.

This acquisition positioned Ripple as the first cryptocurrency platform to own and operate a global multi-asset prime brokerage. Ripple Prime’s services encompass foreign exchange, derivatives, fixed income, equities, and digital assets.

The business processes over $3 trillion in annual clearing volume and serves more than 300 institutional clients. Reports indicate that Ripple’s overall business has tripled in size since the acquisition.

As of late 2026, Ripple Prime held over $1 billion in regulatory net capital. A strategic partnership with Brevan Howard for multi-asset brokerage was announced around October 6, 2026.

Ripple’s stablecoin, RLUSD, is being utilized as collateral within the business. Furthermore, Ripple has outlined plans to migrate certain post-trade activities to the XRP Ledger. This migration remains a prospective initiative, and the specific activities to be transferred will determine the extent of efficiency gains Ripple ultimately achieves.