Ripple Prime launches Delta One for equity derivatives

Ripple Prime has launched Delta One, a suite of equity-linked derivative contracts offered to qualified institutional clients through the firm’s trading and custody infrastructure. The product provides instruments that replicate the economic returns of single stocks or baskets without transferring ownership of the underlying shares.

Delta One includes total return swaps and other delta-one-style arrangements that mirror price and dividend movements of equities and aim to limit tracking error versus the underlying assets. Execution may be arranged over the counter or via centrally cleared instruments where applicable. Settlement and collateral arrangements can include fiat currency and tokenized assets.

The firm plans to provide execution, margining and custody services tied to these contracts and to integrate trade matching, netting and post-trade reporting with its existing prime brokerage and custody operations. Clients will be offered options for contract tenor, collateral type and settlement currency.

Onboarding will require client eligibility checks, documentation and compliance reviews. Ripple Prime will work with counterparties and clearinghouses to meet margining and reporting obligations and to address settlement risk associated with derivatives trades.

Intended users include hedge funds seeking leveraged or short exposure without stock borrowing, asset managers implementing beta-management strategies, and family offices seeking tactical equity exposure. Use cases include portfolio hedging, index replication and arbitrage strategies. Tax implications will depend on client domicile and the specific contract structure.

Because these contracts track underlying securities, they require active monitoring of counterparty credit, margin requirements and settlement mechanics to manage operational and credit risk.