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Ripple Prime closes $275 million notes deal for U.S. expansion

KBRA’s investment grade view hinges on expected parent support, with proceeds slated for working capital and general corporate purposes within a regulated entity.

Reported · Written up by our desk · Market Structure

Ripple Prime, the non-bank prime brokerage arm associated with Ripple, has closed an upsized $275 million private placement of senior unsecured notes to fund its U.S. expansion.

CryptoSlate reports the rating agency KBRA gave the holding company a BBB rating with a Stable Outlook, and said its assessment depends partly on an expectation that Ripple, as the ultimate parent, would support the brokerage if funds could not move freely from the regulated operating company.

The offering closed on Aug. 18, and Ripple said the proceeds would be used to support working capital and general corporate purposes within a regulated entity. Piper Sandler acted as lead placement agent.

The structure separating the borrower, the regulated broker, and the parent support mechanism is central to the credit case, and public documents reviewed do not identify XRP as collateral or disclose whether Ripple Labs signed an enforceable guarantee or what any guarantee would cover.

Latest closeXRP $1.498 ▲2.3%

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