Essential Insights
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According to The Wall Street Journal, Ripple Prime is moving into the financing of leveraged ETFs.
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XRP holders have expressed skepticism about whether Ripple’s growth in institutional financing will benefit the token directly.
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Ripple has detailed the roles of RLUSD and the XRP Ledger, yet these developments do not automatically create a proportional increase in XRP demand.
Ripple’s foray into Wall Street financing highlights a recurring concern for XRP holders: how much value from the company’s advancements is actually transferred to the token?
An article from The Wall Street Journal on October 7 spotlighted Ripple’s increasing involvement in financing leveraged ETFs, a sector largely tied to traditional financial institutions.
This growth enhances Ripple’s institutional credentials, even as advocates for XRP propose ambitious price forecasts, ranging from $1,000 to over $100,000.
However, achieving these lofty predictions hinges on a pivotal question — can attracting financial service clients lead to a real surge in XRP demand?
Ripple’s Activities on Wall Street Explained
At the center of these headlines is Ripple Prime, which evolved from the company’s acquisition of Hidden Road.
In April 2025, Ripple finalized a $1.25 billion acquisition aimed at bolstering its services for institutional clients in areas like foreign exchange and fixed income.
By August 2026, Ripple Prime introduced its Delta One division, enabling clients to engage in total return swaps tied to US equities and digital assets.
Total return swaps offer funds exposure to asset performance through contracts with counterparties, rather than necessitating direct ownership of the assets.
For instance, a leveraged ETF that aims to double a stock’s daily return can utilize derivatives for this exposure, while financing providers earn fees for facilitating the positions.
On October 6, Ripple achieved a new milestone when it was announced that Brevan Howard would use Ripple Prime for its prime brokerage and multi-asset financing needs.
Frustrations Among XRP Holders
Concerns from XRP holders have been evident for quite some time.
In June, Cryptonews reported negative reactions to Ripple’s Swell announcement, with users feeling that the focus was shifting from XRP to its stablecoin RLUSD.
While Ripple can generate income from its financing and institutional services, ownership of XRP does not equate to owning a stake in those ventures.
For holders to see value in XRP, expanding activities must correlate with rising demand for the token.