Ripple Prime expands into stock trading with delta one business
The prime-brokerage unit will offer total return swaps on US-listed equities, indexes and digital assets to institutional clients.
Ripple Prime has launched a delta one business, expanding its prime-brokerage offering into stock trading for institutional clients.
The unit enables investors to execute total return swaps on US-listed equities, indexes and digital assets, Ripple Prime President Noel Kimmel said. The offering targets hedge funds, market makers and exchange-traded fund issuers.
Delta one products give traders exposure to stocks or equity indexes with returns that generally move one-for-one with the underlying asset. They are commonly offered through futures, forwards, swaps and equity baskets.
Ripple already provides prime-brokerage and clearing services in foreign exchange, fixed income and digital assets. The new business allows clients to hold cross-margin exposures across those asset classes through one counterparty.
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Kimmel said the business can support clients trading equities against perpetual contracts, which have attracted more activity on offshore and decentralized exchanges.
Ripple received regulatory approval earlier this year, and the offering officially went live last month. Ripple Prime also secured $200 million in financing from Neuberger Berman and closed a $275 million private placement of senior unsecured notes this month.