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Ripple Prime landed Brevan Howard, a $35 billion hedge fund, as a prime brokerage client for trading, clearing, and financing.
Profits from this deal flow to Ripple the private company. XRP holders receive no revenue share, dividends, or voting rights.
XRP has dropped 9% over the week and sits 63% below its July 2025 peak despite Ripple's string of corporate milestones.
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Ripple, the company synonymous with XRP (CRYPTO:XRP), has secured a significant client in the hedge fund world: Brevan Howard, a well-known firm managing around $35 billion. The partnership was announced on October 6, 2026, with Ripple Prime—Ripple's brokerage arm, formed through a $1.25 billion acquisition of Hidden Road—taking charge of the hedge fund's trading, clearing, and financing.
Brevan Howard is no stranger to Ripple. The firm's affiliates participated in Ripple's $500 million fundraising round in November 2025, alongside major players like Citadel Securities, Fortress, and Pantera Capital, valuing Ripple at $40 billion.
However, it appears XRP has yet to respond positively to this news. As of October 8, XRP is trading at $1.36, down about 4% in a day and 9% over the week, and about 63% below its July 2025 peak of $3.65. So, what impact does Brevan Howard's business have on XRP?
A prime broker acts as a back office for hedge funds. It facilitates trades, holds assets in custody, and offers lending options against positions, allowing funds to trade beyond their available cash—a practice known as margin lending. Clearing occurs after a trade, when both parties confirm what they owe and exchange cash and assets.
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For a sizeable operation like Brevan Howard, managing multiple banks and exchanges simultaneously would typically require separate credit lines and collateral at each institution. Ripple Prime simplifies this by pooling these positions, enabling the fund to use less cash as collateral.
Ripple Prime will navigate two systems to manage Brevan Howard's trades: stocks and bonds settle through central clearinghouses during business hours, while cryptocurrency trades settle 24/7 and often require collateral held on various exchanges. Ripple Prime will provide coverage for both of these systems in its service to the hedge fund.
Prime brokers earn their revenue primarily from interest on margin loans and clearing fees. Ripple Prime reported profits in 2025, and adding a client as large as Brevan Howard is likely to boost those earnings. However, these profits go to Ripple, the private company, meaning owning XRP does not grant holders any share of Ripple's revenue, dividends, or voting rights.
Ripple Prime also secures its funding from traditional credit markets rather than through XRP. It raised $275 million in its first corporate bond sale and has secured a $200 million facility from Neuberger to support margin loans. Neither funding source involves XRP.
In April, Kroll Bond Rating Agency assigned Ripple Prime a BBB rating, placing it in the lowest investment-grade tier. The agency noted that Ripple Prime's earnings heavily rely on derivatives clearing and short-term Treasury financing. While Brevan Howard contributes business in these areas, it doesn't change the overall financial landscape for XRP holders.
Ripple's announcement regarding this deal does not provide specific details. It lacks information on revenue figures, fee structures, trading volumes, or contract duration, and it does not clarify XRP's role. Ripple has said its RLUSD (CRYPTO:RLUSD) stablecoin is already used as collateral on Ripple Prime, though the announcement did not say Brevan Howard would use RLUSD.
XRP's price movement reflects this uncertainty. Despite Ripple's achievements over the past year—such as the Hidden Road acquisition, bond sale, and entry into Wall Street equity brokering—XRP's value has fallen around 9% in the past week. These milestones have yet to positively influence the coin's price.
While this deal benefits Ripple by bringing in fees from a prestigious hedge fund and establishing a reference client for potential future business, XRP holders see little benefit that they can measure. Ripple will profit from the arrangement, but the value of XRP remains tied to broader market factors, such as liquidity, regulatory developments, and overall sentiment in the cryptocurrency space.
This perspective could change if Ripple or Brevan Howard officially states that they will use XRP as collateral or a settlement asset in their transactions. Until such a disclosure occurs, the partnership primarily benefits Ripple, and XRP is likely to continue following wider crypto market trends.
