Ripple Borrows $275 Million at 8.25% to Expand Financial Services
On August 18, Ripple Prime closed a $275 million private placement of senior unsecured notes with an 8.25% coupon and BBB rating from KBRA. The funds will be used for working capital and general corporate purposes within its regulated entity, focusing on expanding U.S.-based clearing services, prime brokerage, financing operations, hiring, and technology development. Ripple Prime plans to launch two new business lines: Delta1, offering total return swaps and synthetic equity financing; and equity prime brokerage, where it will lend money and shares to hedge funds. The firm already holds necessary licenses including SEC broker-dealer registration and CFTC futures commission merchant status. Ripple acquired the underlying business in October 2025 for $1.25 billion. Ripple Prime has tripled its revenue year-over-year since acquisition, doubled client collateral, and turned profitable by mid-2025. The BBB rating allows pension funds and insurers to trade with it without special credit exceptions, giving Ripple a competitive edge in the crypto-affiliated prime brokerage space.
