Ripple Lands Investment-Grade Rating with $275M Debt Raise
Ripple, the blockchain-based service provider, has upsized its senior notes to $275 million through its non-bank prime brokerage arm, Ripple Prime. The move marks a significant milestone for the company, which received an investment-grade rating of BBB from credit analysis agency KBRA.
The BBB rating is crucial as it allows bond desks barred from holding sub-investment-grade assets to hold this debt. This means that institutions can now invest in Ripple's notes without worrying about regulatory issues.
Ripple plans to use the proceeds for working capital and general corporate purposes, while scaling up its U.S. clearing, prime brokerage, and financing services. The company has been rapidly expanding its business, particularly after acquiring Hidden Road for $1.25 billion in April 2023, which was rebranded as Ripple Prime.
The revenue on the platform has tripled year over year since then, indicating that the acquisition may have paid off. This move also underscores the growing demand for institutional-grade services in the cryptocurrency space.