Ripple's Delta One Desk Launch Ignites Debate Over XRP's Role

Ripple's latest move is sending shockwaves through the financial and crypto communities. The company has launched a Delta One desk, a unit within its prime brokerage that deals in total return swaps. This means hedge funds can trade Apple, S&P 500, and U.S. Treasuries without owning a single share.

The total return swap is a product where one party pays the full economic return of a reference asset to a counterparty, who pays a financing rate in return. The receiver gets all the upside and downside of owning the underlying asset without taking custody. Ripple Prime's Delta One desk enters the market with more than $1 billion in regulatory net capital.

The company has also raised $275 million through a private placement of senior unsecured notes and secured a $200 million debt facility from Neuberger Specialty Finance. This capital structure is designed for a financing business, not a token promotion campaign.