Ripple launched its Delta One business for institutions, offering Total Return Swaps across equities, indices and digital assets. Ripple Prime lets clients cross-margin exposures across suppo
Ripple has launched a Delta One business within Ripple Prime, expanding institutional access to Total Return Swaps across several markets. The offering is live for hedge funds, asset managers and other financial institutions. It covers U.S.-listed equities, indices and digital assets through one counterparty with cross-margined exposures.
https://twitter.com/Ripple/status/2092960960474452258?s=20According to Ripple, the Delta One business allows clients to execute Total Return Swaps across U.S.-listed equities, indices and digital assets. Clients can tailor the swaps to their investment horizons, risk mandates and reporting requirements.
The service operates within Ripple Prime, Ripple’s global, multi-asset prime brokerage platform. Notably, the platform already provides prime brokerage, clearing and financing across FX, derivatives, fixed income and digital assets.
However, the Delta One launch adds equities to that existing mix. Ripple said clients can access the markets through a single counterparty relationship.
The company said its Delta One business also supports institutional trading programs through its existing platform structure. The service provides access to the covered markets 24/7.
Ripple Prime said clients can cross-margin exposures across its supported asset classes. This setup allows exposures to sit within one counterparty relationship across different markets.
The company also said its Delta One operation uses a conflict-free execution model. Unlike Delta One desks alongside market-making or proprietary trading businesses, Ripple Prime operates only in clearing and financing.
That operating model separates the Delta One business from market-making and proprietary trading activities. Ripple Prime describes the service as single-counterparty, cross-margined and available 24/7.
Noel Kimmel, President of Ripple Prime, said the Delta One launch extends the platform’s existing services. He said clients can access equities, FX, derivatives, fixed income and digital assets through one counterparty.
Kimmel also said the platform combines prime brokerage, clearing and financing across those markets. Ripple said Ripple Prime has more than $1 billion in regulatory net capital. Financial backing has also expanded this year.
This month, Ripple Prime closed an upsized $275 million private placement of senior unsecured notes. The notes followed a $200 million debt facility from funds managed by Neuberger Specialty Finance earlier this year. Ripple said the latest financing supports its continued growth.
