DTCC Learning Center Makes Major Clarification About XRP

Crypto expert Chad Steingraber posted a screenshot from the DTCC’s Learning Center, showing XRP classified as a cryptocurrency with specific haircut rules. He followed it with an explanation of what a haircut means in this context.

The DTCC’s Haircut Rules for XRP

The Depository Trust and Clearing Corporation custodies approximately $114 trillion in assets and settles the majority of U.S. securities transactions. Its Learning Center now includes formal guidance on how XRP may be treated for clearing and collateral purposes.

A haircut, in finance, is a percentage reduction applied to the market value of an asset used as collateral. The more volatile the asset, the larger the haircut. If a stock worth $10,000 carries a 35% haircut, a lender treats it as worth $7,000 when calculating borrowing capacity. It protects lenders if market conditions shift before collateral can be liquidated.

This is what a "Haircut" means in these trading services.

For XRP with a "share price" (meaning, ONE XRP) of $5 or less, a significant haircut is applied.

While higher-priced XRP may be subject to a 35% haircut or the VaR Charge, depending on its liquidity.

Using a $5 XRP as… https://t.co/rEDOBwvIGfpic.twitter.com/WZ0la8KDpj

— Chad Steingraber (@ChadSteingraber) July 15, 2026

The XRP Haircut

For XRP, the DTCC guidance published in its NSCC Risk Margin Component Guide establishes a $5 per-unit price as the key threshold. At $5 or below, XRP receives a haircut equal to the greater of the haircut applied to illiquid securities or 100%.

Above $5, XRP may receive a 35% haircut or a Value-at-Risk (VaR) charge, depending on liquidity and whether it trades OTC, as an IPO, or on a national exchange. In this case, the $5 figure is an operational benchmark, not a price target. However, this means XRP becomes significantly more efficient as collateral once it trades above $5, making it far more useful within DTCC’s clearing framework.

Ripple’s Position Within the DTCC

This classification does not exist in isolation. Ripple has built its presence inside DTCC infrastructure through a deliberate sequence of steps. In April 2025, Ripple acquired Hidden Road, a prime broker with over $3 trillion in annual transactions, which was subsequently rebranded as Ripple Prime.

By March 2026, Ripple Prime appeared live on the NSCC directory. In May 2026, Ripple Prime joined the DTCC’s 50-firm Industry Working Group, sitting alongside Goldman Sachs, J.P. Morgan, BlackRock, Circle, and Ondo Finance. That group is actively developing standards for tokenized securities settlement.

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Why This Matters

The rollout follows two phases. Phase 1 launches this month with limited production trades. Phase 2 follows in October 2026 as a full-service launch, giving DTC Participants the option to select tokenized record-keeping as a standard operational feature.

More favorable collateral treatment makes an asset more efficient within clearing and financing arrangements. XRP now has documented treatment inside one of the most significant post-trade institutions in global finance. As one commenter pointed out, “you don’t write haircut rules for an asset you have no intention of touching.”

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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