XRP ETFs Used as Collateral in Schwab Money Market Fund Repos
Four U.S.-listed spot XRP exchange-traded funds (ETFs) have appeared as collateral in repurchase agreements held by the Schwab Prime Advantage Money Fund, according to a regulatory filing dated August 31. The total value of these ETF shares used as collateral was at least $8.32 million, marking a significant increase from earlier months and indicating growing institutional interest. These repos were part of larger transactions totaling approximately $3.99 billion with counterparties including JPMorgan Securities and BofA Securities. This development signals that XRP ETFs are beginning to be treated as financeable assets within traditional Wall Street infrastructure, rather than just investment vehicles for exposure to the cryptocurrency’s price movements. The repo market is a critical component of global financial systems, with an estimated size of $12.6 trillion in the U.S., and this inclusion suggests broader acceptance by institutional players. Separately, Ripple Labs has announced plans to build native repo settlement functionality on its XRP Ledger (XRPL), aiming to bring parts of post-trade activity onto blockchain infrastructure. While distinct from Schwab’s use case, these parallel developments highlight growing integration of XRP-related products into both traditional and decentralized financial systems.
Topics: collateral usage repurchase agreements Schwab Money Fund XRP ETFs