On Monday, Ripple announced that it had secured a $200 million debt facility from Neuberger Specialty Finance, an asset-based investment company dedicated to providing high-yield credit.
The company said the financing is intended to support continued expansion of its multi-asset prime brokerage platform, Ripple Prime, as it sees “rising client demand for institutional-grade prime services and margin financing solutions.”
How Will Ripple Prime Use Its $200M DebtRipple Prime was created after Ripple acquired Hidden Road for around $1.2 billion late last year. It functions as the clearing and intermediation arm for exchange-traded derivatives (ETD) and related financing activities. The firm stated that its platform has been performing strongly, saying Ripple Prime’s revenue has tripled year-over-year.
By doing so, the brokerage platform said it expects to increase its lending capacity and strengthen its ability to support both existing institutional clients and new relationships.
Noel Kimmel, President of Ripple Prime, said that access to financing and balance-sheet strength matters for institutional participants in volatile and fast-moving markets.
Kimmel also highlighted Neuberger Specialty Finance’s experience in asset-based finance and said the lender’s support reflects the prime services platform Ripple Prime has built, along with the company’s “many growth opportunities.”
Neuberger And Kroll Both Weigh InNeuberger Specialty Finance’s Peter Sterling, the firm’s Head, said the facility reflects Neuberger’s focus on working with market-leading platforms.
The announcement arrives after credit rating activity earlier this year. In April, Kroll assigned Ripple Prime an inaugural investment-grade issuer rating of “BBB.”
Featured image created with OpenArt, chart from TradingView.com
