Ripple Prime expands with Brevan Howard, but XRP’s role stays undisclosed

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Ripple Prime expands with Brevan Howard, but XRP’s role stays undisclosed
PrimeXBT Editorial Team
Reviewed by PrimeXBT

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XRP

Ripple Prime has expanded its brokerage mandate with hedge fund Brevan Howard, adding to a business that now processes over $3 trillion in annual clearing volume and serves more than 300 institutional clients. But the October 6 agreement does not disclose an XRP allocation, settlement requirement, or token purchase, leaving the link between the brokerage's growth and XRP demand unconfirmed.

The company said on October 6 that funds managed by Brevan Howard would use Ripple Prime for multi-asset brokerage, clearing and financing. The announcement does not provide transaction volume, collateral balances, pricing or a start date. Brevan Howard's roughly $35 billion in assets under management describes the manager's whole business, not a balance placed with Ripple Prime.

Ripple Prime already earns fees unrelated to XRP

The brokerage, built from Ripple's $1.25 billion acquisition of Hidden Road, began booking fees on leveraged equity products by October 2026 through total return swaps, which let a client receive a stock's gains and losses while Ripple Prime supplies financing. It finances the Tradr 2X Long SNDK Daily ETF at OBFR plus 4%, about 8% annualized. The addressable market is sizeable: 593 leveraged ETFs in the US hold over $256 billion in assets, and none of that revenue requires a client to buy XRP.

Three channels could connect the brokerage to XRP

Ripple Prime could still generate XRP demand through three channels that crypto.news says should be measured separately. First, institutions can trade or finance XRP directly through Ripple's US spot prime brokerage. Second, Ripple has said it plans to migrate post-trade activity to the XRP Ledger, though that migration is a stated plan rather than a completed one. Third, the ledger's liquidity functions can route a token exchange through XRP when it offers a better execution price.

Yet each channel carries a different scale of impact. The XRP Ledger's standard transaction fee is a minimum of 10 drops, or 0.00001 XRP, an amount that is destroyed rather than paid out, so a million standard transactions at that minimum would burn 10 XRP.

RLUSD, not XRP, has the clearer collateral role

Ripple has said RLUSD, its stablecoin, is being used as collateral within the brokerage, and some derivatives customers have chosen to hold balances in the dollar token. That arrangement can create demand for RLUSD while producing little direct demand for XRP beyond ledger fees and reserves, according to crypto.news.

The business has reportedly grown threefold since the Hidden Road acquisition, and the brokerage held over $1 billion in regulatory net capital as of late 2026. Those figures describe financing capacity, not XRP bought or held for clients. As crypto.news put it, Ripple Prime's growth and XRP demand "remain related possibilities with different disclosures."

Sources: crypto.news, Crypto Briefing

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