# Ripple Challenges Wall Street Banks in Lucrative Leveraged ETF Swap Market

- URL: https://stocks.freetheai.org/news/ripple-challenges-wall-street-banks-in-lucrative-leveraged-etf-swap-market-87db9f
- Published: 2026-10-08T05:28:54Z
- Category: crypto; sentiment: neutral; impact: medium
- Symbols: [BITSTAMP:XRPUSD](https://stocks.freetheai.org/symbols/BITSTAMP-XRPUSD)
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Enterprise blockchain firm Ripple (BITSTAMP:XRPUSD) has emerged as a direct competitor to major Wall Street banks by financing swaps for leveraged exchange-traded funds (ETFs). Through its institutional brokerage arm, Ripple Prime, the company is capturing market share in a highly profitable sector traditionally dominated by big banks. This expansion is supported by Ripple Prime's Delta One offering, which enables institutional clients to execute swap transactions for U.S. equities, indexes, and digital assets.

This move marks a significant shift as digital asset firms increasingly contest traditional financial institutions on their own turf. Leveraged ETFs represent a massive market, with 593 funds currently trading in the United States holding over $256 billion in assets. Financing these funds is highly lucrative, with some contracts yielding financing costs of around 8% in addition to management fees. Ripple's entry into this space was accelerated by its $1.25 billion acquisition of prime broker Hidden Road in 2025, which provided the necessary infrastructure for brokerage, clearing, and derivatives.

Investors should monitor how traditional banks respond to this new competition and whether Ripple can continue to scale its institutional presence. A key indicator of future growth will be the progress of Ripple's expanded partnership with alternative asset manager Brevan Howard, which manages approximately $35 billion in assets. Additionally, market participants will watch whether other blockchain firms attempt to replicate this model to capture traditional market share.

## Key points

- Ripple is competing with major Wall Street banks by financing total return swaps for leveraged ETFs.
- The company operates this service through Ripple Prime, which launched its Delta One institutional offering in August 2026.
- U.S. leveraged ETFs represent a massive market with 593 active funds holding over $256 billion in assets.
- Ripple expanded its institutional reach through a $1.25 billion acquisition of prime broker Hidden Road in 2025.
- A recently expanded partnership with Brevan Howard, which manages $35 billion, further supports Ripple's Wall Street expansion.

## Questions and answers

### How is Ripple competing with Wall Street banks?

Ripple is competing by offering financing for total return swaps on U.S. leveraged exchange-traded funds (ETFs) through its institutional brokerage arm, Ripple Prime. This allows Ripple to earn lucrative financing fees that traditionally went to major banks.

### What is Ripple Prime?

Ripple Prime is Ripple's institutional brokerage arm. It was created after Ripple completed a $1.25 billion acquisition of prime broker Hidden Road in October 2025, providing clearing, brokerage, and financing services for derivatives, foreign exchange, and digital assets.

### How large is the leveraged ETF market Ripple is entering?

There are currently 593 leveraged ETFs trading in the United States, managing more than $256 billion in total assets. Out of this total, 426 are single-stock leveraged ETFs.