This agreement represents a deepening of the relationship between Ripple, a provider of blockchain solutions across traditional and digital finance, and Brevan Howard, a global alternative investment manager specializing in global macro and digital assets, according to the release.
It also reflects growing demand from investment managers for prime brokerage solutions across traditional and digital markets that are regulated and enterprise-grade, per the release.
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“There are few firms equipped to provide the next generation of prime services that sophisticated investors expect, and Brevan Howard’s trust in Ripple Prime is recognition of our strong competitive position and cross-asset capabilities,” Ripple Prime President Noel Kimmel said in the release.
The Wall Street Journal (WSJ) reported Wednesday (Oct. 7) that the announcement that Ripple Prime will provide these services to Brevan Howard is an example of how Ripple has broken into Wall Street.
Ripple has emerged as a player in financing leveraged exchange-traded funds (ETFs), a lucrative business that has been dominated by big banks. Ripple Prime is working with several ETF providers and expanding to hedge funds and other investment managers, according to the report.
“It’s definitely a growing and meaningful part of our business, so we are excited about it in that sense,” Kimmel told WSJ.
Ripple Prime was created from Ripple’s $1.25 billion acquisition of prime brokerage Hidden Road last year, per the report.
Ripple said at the time of the acquisition of Hidden Road that the move made Ripple the first cryptocurrency company to own and operate a multi-asset prime broker. The company said that Hidden Road was clearing $3 trillion per year across markets with more than 300 institutional customers, and that with Ripple’s backing, it could become the largest nonbank prime broker in the world.
Ripple announced in November that it was launching digital asset spot prime brokerage capabilities for the United States market. The company said it had combined its licenses with Hidden Road’s solutions, under Ripple Prime, to let institutions access foreign exchange, digital assets, derivatives, swaps and fixed income.
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