Kroll Bond Rating Agency (KBRA) assigned a BBB rating to Ripple Prime, the prime brokerage arm of Ripple. The rating may increase Ripple’s influence as a bridge between on-chain and traditional finance.
KBRA made Ripple Prime more visible to traditional investors after assigning an investment grade BBB rating to Ripple Prime, formerly Hidden Road.
The subsidiary is a registered broker-dealer, with CFTC registration, a member of FINRA and SIPC, as well as a clearing member of CME Group and a member of the FICC Government Securities Division.
Having an investment-grade rating means counterparties can now trade with Ripple Prime under the regular credit framework, without requiring exceptions.
The BBB rating indicates good credit quality and moderate-to-low risk of loss. This rating is below the highest quality AA or AAA, indicating the issuer can meet financial obligations, but may be susceptible to adverse economic conditions.
KBRA gives Ripple recognition for its business model
KBRA based its rating on the business of Ripple Prime US, which is now in its expansion phase. Ripple Prime has been developing its ETF derivative platform since 2024, achieving more meaningful scaling in the past year.
Ripple Prime has grown its balance sheet in 2025, achieving profitability for the financial year. Ripple helped speed along the process with a $500M capital injection, boosting the initial assets of Hidden Road.
KBRA notes Ripple Prime has more niche and concentrated activities compared to other brokerages, but has shown readiness to diversify through additional business lines and growing its team with experts.
The rating reflects the readiness of Ripple to secure further support. KBRA warns that if Ripple Prime issues debt, Ripple can offset some of the constraints with financial support. The rating was based on Ripple’s strong financial situation and readiness to invest in its prime brokerage subsidiary. Ripple itself has reported $5B in cash at the end of 2025.
KBRA expects Ripple Prime to grow in 2026
Ripple Prime may offset the slow crypto market performance and the shrinking liquidity of XRPL. The company is still in the growth phase, but KBRA expects margins to improve in 2026.
Ripple Prime mostly earns from spread-based financing activities, sensitive to balance sheet size and interest rate changes. KBRa predicts other business lines and types of trading, boosting the brokerage fees.
For now, the BBB rating reflects adequate capital reserves for the risk profile, with moderate leverage. As of 2026, Ripple Prime offers OTC spot trading for XRP and XLUSD, as well as crypto derivatives, forex, fixed income products, precious metals, and oil.
Following the news, XRP traded at $1.31, a slight recovery alongside other assets. XRP also moved up the ranks of market cap, regaining the top 4 spot. The asset retains relatively high mindshare and points to Ripple’s ambitions to tap both crypto markets and traditional trading.
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Source: https://www.cryptopolitan.com/kbra-assigns-bbb-rating-to-ripple-prime/
