Ripple Prime launched its Delta One business on August 27, adding equity derivatives to its institutional brokerage platform. The service provides institutional investors including hedge funds and asset managers with access to total return swaps tied to U.S.-listed equities, indices, and digital assets.
The Delta One offering enables cross-margining across supported asset classes through a single counterparty relationship. Ripple Prime President Noel Kimmel stated that the launch represents a natural extension of the platform, allowing clients to access equities, foreign exchange, derivatives, fixed income, and digital asset prime brokerage services through one provider operating on a 24/7 basis.
Platform Expansion
The Delta One launch follows Ripple Prime's November expansion into U.S. digital asset spot prime brokerage, which added institutional over-the-counter spot trading alongside swaps, futures, and options. The company developed this business from its acquisition of Hidden Road, which was rebranded as Ripple Prime.
Total Return Swaps Explained
Total return swaps are agreements in which payments depend on changes in the value of a specified asset, index, or related derivative multiplied by an agreed notional amount. These instruments provide economic exposure to an asset without requiring direct ownership, allowing institutions to manage market exposure through derivatives while consolidating positions across asset classes.
Ripple Prime distinguishes its Delta One operation by focusing solely on clearing and financing flows rather than combining derivatives services with market-making or proprietary trading.
Financial Backing
The Delta One launch comes as Ripple Prime reports more than $1 billion in regulatory net capital. In August, Ripple Prime closed an upsized $275 million private placement of senior unsecured notes to support continued growth. This followed a $200 million debt facility obtained earlier in the year from funds managed by Neuberger Specialty Finance.
