Ripple, a leading blockchain technology company known for its global payment infrastructure, has begun competing directly with some of Wall Street’s most prominent banks. This shift was highlighted in a recent Wall Street Journal article, which stated that Ripple has expanded its reach across various segments of the crypto industry, including stablecoins and asset custody. The report underscored the company’s transition from a crypto-focused entity to a significant player in traditional financial markets.
Ripple’s move into prime brokerage
A pivotal part of Ripple’s expansion came with its 2025 acquisition of Hidden Road, a prime brokerage firm. The $1.25 billion deal led to the rebranding of the business as Ripple Prime. Now, Ripple Prime provides clearing, financing, and prime brokerage services for institutions engaged with traditional and digital asset markets.
Ripple Prime rapidly secured a major institutional client, Brevan Howard, a prominent global hedge fund. Noel Kimmel, who serves as president of Ripple Prime, described the partnership as proof of the company’s strong competitive stance and the breadth of its offerings across asset classes.
The company has also built a presence in the leveraged ETF sector, a field previously dominated by large financial institutions. By acting as a swap counterparty, Ripple earns financing fees, with a Wall Street Journal analysis noting approximately 8% annualized returns on some transactions. Morningstar Direct reports that the leveraged ETF sector comprises 593 funds with more than $256 billion in total assets.
| Metric | Detail |
|---|---|
| Acquisition cost (Hidden Road) | $1.25 billion |
| Leveraged ETFs (number) | 593 |
| Assets under management | $256 billion |
| Reported swap counterparty fee | 8% annualized |
Ripple and other nonbank financial firms operate under different risk frameworks compared to traditional banks. This provides a structural advantage in markets like ETF financing, which Kimmel described as an increasingly important segment for the firm’s growth.
Mini dictionary: Prime brokerage, a service offered by financial firms to institutions such as hedge funds, includes clearing, settlement, lending, and access to leverage for diverse trading activities.
Implications for XRP and the crypto sector
The Wall Street Journal report surfaced as XRP, Ripple’s native cryptocurrency, was trading close to $1.42. Ripple Prime leverages the company’s XRP-powered infrastructure, meaning that as Ripple deepens its institutional links, demand for XRP could rise accordingly.
As Ripple’s credibility as an institutional financial operator strengthens, the perception of XRP in investment circles is also evolving. The Journal’s framing of Ripple as a challenger to major banks, rather than simply a crypto-enabled payments provider, is seen as a meaningful shift for Ripple’s ecosystem and the token’s reputation among institutional players.
Ripple’s entrance into leveraged ETF financing, coupled with established partnerships like Brevan Howard, shows how rapidly the company is positioning itself as a real competitor to Wall Street banks across both digital and traditional assets.
Growing recognition and industry status
WSJ Markets shared the news via its official account on X, describing Ripple as a company now actively entering traditional financial territory. For Ripple, which has faced regulatory scrutiny and uncertainty in recent years, this level of acknowledgment marks a notable change in industry perception.
Ripple, founded in 2012, has focused on modernizing payments using blockchain technology, providing tools and services to streamline cross-border transactions for financial institutions. The recent recognition from established financial media outlets signifies its transition into a fully-fledged institutional partner.
Describing Ripple as operating within Wall Street’s landscape, rather than at its margins, reflects the shift in how leading financial circles view the company’s ambitions and capabilities.
