Ripple has received another $200 million financing round led by Neuberger Berman. The funding is directed toward its prime brokerage arm, Ripple Prime.
With these funds, the company aims to build up its lending capacity for its prime-brokerage operations in traditional and digital asset markets. For further context, Neuberger Berman arranged this fundraise via a specialty-finance division, according to Ripple’s announcement.
The funding focuses on working as an asset-backed debt facility based on institutional borrowing demand, company executives said. It will enable Ripple Prime to access additional capital. It comes in handy as more clients engage in leveraged trading of products based on equity, fixed income, and crypto.
The fresh funds are likely to help institutional investors looking for more margin access as they deal in various asset classes. Ripple’s brokerage arm, which was launched last year, has been rolling out various services for professional market participants.
Executives said they will use the funds to finance the borrowing needs of institutional clients on Ripple Prime. Hence, the brokerage platform will offer debt facility for trading and financing.
Officials from the both companies expressed optimism regarding the partnership. “Dependable access to financing and balance sheet strength are critical to institutional participants in today’s dynamic markets,” stated Noel Kimmel, President of Ripple Prime.
He added, “This facility enables us to grow alongside our clients by delivering increased margin capacity, greater responsiveness, and improved capital efficiency. Neuberger Specialty Finance has deep expertise in asset-based finance and a strong understanding of our business model, and its support reflects the differentiated prime services platform we have built and the many growth opportunities available to us.”
In addition, Peter Sterling, Head of Neuberger Specialty Finance, also shared his insight. He remarked: “Ripple Prime has built an innovative brokerage platform combining fintech-grade technology and agility with bank-level compliance and operational rigor.”
Earlier, Ripple Prime entered a partnership with Bullish, which allowed clients to use RLUSD to trade Bitcoin options on the platform.
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