Schwab Money Fund Pledges $4B Against Four XRP ETFs

Charles Schwab's Prime Advantage Money Fund has filed its monthly portfolio report, revealing that four U.S. spot XRP exchange-traded funds (ETFs) have been pledged as collateral against nearly $4 billion of borrowing.

The four ETFs are Grayscale XRP Trust ETF, Canary XRP ETF, Franklin XRP ETF, and Bitwise XRP ETF, with JP Morgan Securities and Bofa Securities being the counterparties on five repurchase agreements worth $3.99 billion.

Notably, the collateral value of these four ETFs has increased significantly since April, rising from $35,973 to at least $8.3 million by August 31.

The scale of this development is substantial, with the total collateral value representing a fraction of a percent of the fund's net assets.