XRP ETFs Used as Repo Collateral by Schwab Money Market Fund

XRP exchange-traded funds (ETFs) are gaining traction in Wall Street's short-term funding machinery. According to Schwab's latest regulatory filing as of Aug. 31, four spot XRP ETFs from Grayscale, Canary, Franklin, and Bitwise were used as collateral for repurchase agreements held by the Schwab Prime Advantage Money Fund.

The amount is still small, but it represents a notable increase in three months. At least $8.32 million of XRP ETF shares appeared in the collateral baskets, up roughly 20-fold from May.

Repos are essentially short-term secured loans: one institution receives cash while providing securities as collateral, with an agreement to reverse the transaction later. They form a critical part of Wall Street's funding infrastructure.