Ripple is earning fees financing leveraged stock bets, a business long run by banks
60-second summary
Ripple’s $1.25 billion purchase of Hidden Road lets the firm finance leveraged stock bets, a service traditionally run by banks, enabling funds to amplify daily moves in equities like Nvidia and SanDisk. By charging fees on these amplified positions, Ripple creates a new revenue stream that could boost its earnings and broaden crypto‑finance integration, influencing market liquidity and competitive dynamics.
The crypto company's $1.25 billion acquisition of Hidden Road has opened a corner of Wall Street where funds pay to amplify daily moves in stocks such as Nvidia and Sandisk.