According to the announcement Ripple Prime, this institution's principal brokerage business platform has launched a new service named Delta One. The service targets hedge funds, market makers, asset management firms, and ETF issuers. The new product integrates U.S. stocks, major stock indices, and crypto assets into the same institutional trading service, indicating that the firm is expanding its services from digital asset brokerage to traditional financial derivatives.
Provide total return swap products
According to the disclosure, the core product of Delta One's business is Total Return Swaps ( TRS ). Institutional clients do not need to directly buy and hold the underlying assets in order to gain exposure to relevant price changes and dividend yields. The initial coverage includes U.S.-listed stocks, major stock indices, as well as crypto assets.
This type of arrangement is mainly aimed at institutional investors who wish to manage multiple types of asset positions uniformly. The article states that clients can handle stock and crypto asset exposures under the same principal brokerage relationship, without having to manage each position through different counterparties separately.
Stocks and cryptocurrencies are placed in the same margin pool.
Ripple Prime One of the key points emphasized this time is to bring stock derivatives and crypto asset positions onto the same platform, with support for unified margin management. According to them, the related services can operate through a single counterparty and a shared margin pool, and can provide 24-hour service.
Ripple Prime President Noel Kimmel stated that this business is a natural extension of the platform's existing institutional services and also meets customers' needs for cross-asset principal brokerage services. He mentioned that customers can access principal brokerage, clearing, and financing services related to stocks, foreign exchange, derivatives, fixed income, and digital assets through a single counterparty.
Launched with over $1 billion in regulatory net capital
The company disclosed that Delta One was launched with over $1 billion in regulatory net capital. This means that Ripple Prime has prepared a strong capital foundation for its new business as it expands its institutional operations.
The article also mentioned that Ripple Prime completed a private placement of $275 million in senior unsecured notes earlier this month. Previously, the company also received a debt financing arrangement of $200 million managed by Neuberger Specialty Finance. The additional funds will be used to support business expansion.
Currently, Ripple Prime indicates that its Delta One business will focus on three services: settlement, execution, and financing.
Additional information:The article describes Ripple Prime as the institutional principal brokerage business department of Ripple. The focus of this new business is to integrate traditional stock derivatives with digital asset services on the same institutional platform.
