Ratings agency KBRA assigned an investment-grade BBB credit rating to Ripple Prime, the prime brokerage arm of Ripple (XRP), in a move that signals growing institutional credibility for the company as it expands beyond digital assets and into traditional finance.
KBRA Rating Details
The rating, announced Apr. 2, covers both the holding company and its core operating subsidiary. KBRA pointed to Ripple Prime's growth in clearing and intermediation services across exchange-traded derivatives and fixed income repo markets.
The unit, formerly known as Hidden Road, has already turned profitable in 2025. Ripple injected roughly $500 million in capital after the acquisition. CEO Brad Garlinghouse said days earlier that Ripple Prime had tripled its revenue rates in 12 months.
Since launching its ETF platform two years ago, the company has scaled its operations. Its repo business, focused on short-duration U.S. Treasuries and agency securities, reached meaningful transaction volume this year.
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Ripple Financial Strength
KBRA cited Ripple's balance sheet as a key factor behind the rating. The company holds nearly $5 billion in cash reserves and more than 40 billion XRP.
The agency said Ripple is highly likely to provide financial support to its brokerage arm if needed, given the unit's strategic role. That expectation of parental backing played a "central role" in aligning the ratings across both entities.
KBRA expects margin expansion for Ripple Prime in 2026, driven by a larger balance sheet and operational leverage. However, the agency flagged that Ripple's revenue remains heavily tied to digital asset activity, including XRP sales, which leaves earnings exposed to crypto market swings.
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