Ripple Prime Expands Into Leveraged ETF Financing

Ripple Prime is financing leveraged exchange-traded funds through swaps, extending Ripple’s brokerage business into a market traditionally served by major banks. The arrangements provide funds with exposure to amplified daily movements in individual stocks, while Ripple Prime receives financing fees, according to reporting cited in the supplied materials. One reported example is the Tradr 2X Long SNDK Daily ETF, which seeks twice the daily performance of Sandisk shares. Its financing rate is tied to the overnight bank funding rate plus four percentage points. Around October 7, 2026, that equated to roughly 8% on an annualized basis, according to the reports. The fee is charged in connection with the swap and is distinct from the fund’s management fee. Leveraged ETFs commonly use total return swaps to obtain exposure without purchasing the full amount of underlying shares. The brokerage supplies financing and assumes the other side of the contract; it may hedge its exposure through purchases of shares or other transactions. Funds reset their exposure daily, so compounding and market movements can affect returns over periods longer than a day.