Ripple is expanding into leveraged exchange-traded fund (ETF) financing through Ripple Prime, entering a market traditionally dominated by major banks. The move follows its USD 1.25 billion acquisition of Hidden Road and comes as XRP faces a critical technical test.
According to a Wall Street Journal report, Ripple Prime now finances funds that multiply daily stock and index movements. Meanwhile, XRP trades within a narrow range, with analysts watching for a possible breakout toward USD 2.
The expansion gives Ripple another source of institutional financing fees beyond its existing cryptocurrency operations. At the same time, XRP's price structure has left traders watching two possible directions.
Ripple entered the financing market after acquiring Hidden Road in October 2025 for USD 1.25 billion. The acquisition brought an established brokerage operation covering stocks, bonds, currencies, and digital assets.
Through Ripple Prime, the company now provides financing to leveraged ETFs that seek amplified daily returns. These funds often use financial contracts called total return swaps instead of buying additional shares.
For example, a fund targeting twice Nvidia's daily performance can use a swap to obtain that exposure. The financing provider then manages its risk while collecting fees.
The Wall Street Journal reported that the Tradr 2X Long SNDK Daily ETF pays Ripple an overnight funding benchmark plus four percentage points. That arrangement produces an annualized financing rate of roughly 8% at prevailing rates.
According to Morningstar Direct, the United States has 593 leveraged ETFs holding more than USD 256 billion. Of these, 426 track individual stocks.
Meanwhile, tighter banking capital requirements have opened opportunities for nonbank providers, including Ripple Prime, Jane Street, and Clear Street.
Ripple launched its Delta One business in August, offering swaps linked to American stocks, market indexes, and cryptocurrencies.
At launch, the company reported more than USD 1 billion in regulatory net capital. It also completed a USD 275 million senior debt offering to support further expansion.
Separately, Ripple announced an expanded agreement with hedge fund manager Brevan Howard on Tuesday. Under the arrangement, Ripple Prime will provide financing, clearing, and brokerage services across multiple asset classes.
Still, leveraged ETF financing carries risks. These funds reset their exposure daily, while sharp stock movements can create losses that exceed available fund assets.
Ripple has not disclosed revenue from this financing business. It has also provided no figures showing how much activity involves XRP or the XRP Ledger.
Also Read: What Could the Agentic AI Era Mean for Ripple, XRP?
While Ripple expands its institutional operations, XRP remains between USD 1.46 and USD 1.56 after failing to reclaim USD 1.70.
In an October 7 video, analyst ChartNerd described the token's structure as neutral. Descending resistance and horizontal support have contained price movement for approximately one week. ChartNerd identified USD 1.80 to USD 2 as potential upside targets, with USD 2.05 representing another possible level. However, XRP must first clear resistance near USD 1.65 and USD 1.69.
The analyst based those projections on Fibonacci extensions from September's USD 1.25 low and subsequent USD 1.70 peak.
At the time of reporting, XRP traded near USD 1.47, down 1.5% daily and nearly 2% weekly. Meanwhile, trading volume climbed almost 32% to approximately USD 2.14 billion.
ChartNerd also warned that previous price spikes produced false breakouts. Therefore, the analyst wants confirmation through a resistance break, successful retest, and move above the local high.
On the weekly chart, XRP has remained below its 50-week exponential moving average for seven weeks. Meanwhile, its rising 20-week average provides support.
A confirmed upside break could strengthen the bullish outlook. Conversely, losing support near USD 1.46 could expose the low USD 1.30s or lower levels.
Ripple Prime's leveraged ETF financing expansion adds another institutional business following its Hidden Road acquisition and Brevan Howard agreement. Meanwhile, XRP remains between key technical levels. A confirmed breakout could bring 1.80–2 into focus, while a support breakdown could expose prices near USD 1.30.