Ripple Invades Goldman and JPMorgan Market Without XRP
Ripple has opened a Delta One trading desk inside Ripple Prime, its prime brokerage arm. It lets institutional investors bet on the price moves of US-listed stocks, major stock indices, and crypto without directly owning them.
It puts Ripple into a business dominated by Wall Street banks such as Goldman Sachs and JPMorgan. And despite Ripple's crypto roots, XRP is not stated as a requirement for using the new service.
Ripple Delta One Desk Enters a Bank-Dominated Market
Delta One sounds obscure, but the idea is simple. These desks sell products that move one-for-one with the asset they track. Their core tool is the total return swap (TRS). A client collects the full return of a stock, index, or token. The client never has to own it.
The stakes on these desks are enormous. In 2008 and 2011, rogue traders at Société Générale and UBS lost billions on Delta One books. Those scandals showed how much money flows through this corner of the banking industry.
Ripple announced the desk on Wednesday, with the product live and aimed at hedge funds and asset managers. Clients face one counterparty. They can offset margin across stocks, foreign exchange (FX), bonds, derivatives, and crypto around the clock.
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