Ripple prime-brokerage unit secures $200 million debt facility

Investing.com -- Ripple's prime-brokerage unit secured $200 million in financing from Neuberger Berman to increase margin capacity for investors trading across traditional and digital markets.

The digital-asset company arranged the asset-based debt facility through Neuberger's specialty-finance group. Ripple can access up to $200 million based on institutional investor borrowing needs as they trade equities, fixed income and crypto.

Ripple Prime President Noel Kimmel said the financing represents a unified credit structure across major asset classes. The unit uses blockchain technology and will deploy the funds to expand its capacity to finance client trades, known as margin availability. The margin loans function as collateral, similar to facilities backed by credit-card receivables or auto loans.

Prime brokerages provide services including financing, securities lending and custody to help investors manage risk and execute trades. As a nonbank, Ripple offers prime-brokerage services in traditional markets such as foreign exchange and digital assets.

Last year, Ripple acquired prime-brokerage Hidden Road for $1.25 billion, marking one of the largest deals in cryptocurrency industry history. The company later agreed to purchase treasury-management software provider GTreasury for $1 billion.

Ripple also raised $500 million in November, achieving a $40 billion valuation with backing from Fortress Investment Group and Citadel Securities. That capital was allocated to expand Ripple's custody, stablecoin and prime-brokerage services.

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