Ripple is further extending its institutional business into the traditional financial derivatives market. The company stated that Ripple Prime has launched Delta One services, providing institutional clients with total return swaps (TRS) on U.S.-listed stocks, indices, and digital assets, in an attempt to bring traditional asset trading and crypto asset trading under the same service framework.

New Total Return Swap Products Added

This business is mainly targeted at institutional investors. According to Ripple, customers do not need to directly hold the underlying assets; they can also obtain relevant returns through total return swaps. The related products can cover U.S. stocks, indices, and digital assets, and can be customized according to the customers' investment duration, risk requirements, and reporting needs.

Delta One usually refers to a type of derivative that is highly correlated with the performance of the underlying asset price. Total return swaps are a common form of this, where the prime broker is responsible for financing and hedging, while clients obtain economic exposure to the underlying asset. Such instruments are often used by hedge funds, asset management institutions, etc., to improve the efficiency of capital utilization and the flexibility of positions.

Focus on a unified entry point for multiple assets

Ripple Prime One of the key focuses of this expansion is to bring traditional markets and digital asset markets under the same counterparty system. The company states that customers can access stocks, foreign exchange, derivatives, fixed income, and digital assets through a single counterparty, without having to maintain separate service relationships for different asset categories.

Ripple Prime also emphasizes cross-market margin requirements and round-the-clock service capabilities. The company states that eligible positions can be included in the unified collateral consideration to improve capital efficiency; moreover, the 24-hour, 7-day-a-week availability is more in line with the continuous trading characteristics of the digital asset market.

Institutional business continues to expand.

Ripple also mentioned that its platform adopts an execution model primarily focused on financing and clearing, rather than conducting counterparty transactions with clients. This statement is intended to highlight its differences from some traditional Wall Street institutions, which often engage in both proprietary trading and market-making activities.

In terms of financial strength, Ripple Prime claims to have over $1 billion in regulatory net capital and has completed a private placement of $275 million in senior unsecured notes. Previously, the company also received a $200 million debt financing arrangement earlier this year.

As Delta One business joins the existing principal brokerage, clearing, and financing services, Ripple is further repositioning itself from a blockchain and payment company to an institutional service platform that connects traditional finance with the digital asset market.