Shares in four U.S. spot XRP exchange-traded funds are being pledged as collateral for nearly $4 billion in borrowing from a Charles Schwab money market fund, according to the fund’s latest monthly regulatory filing.
Filing Details XRP ETF Collateral
The information appears in the Charles Schwab Family of Funds’ latest N-MFP3 portfolio report, which covers the period ended in August. The filing lists holdings tied to four U.S. spot XRP ETFs and indicates that the positions are being used to secure borrowing from the money market fund.
The report does not, based on the available information, identify the borrower or provide additional details about the terms of the transactions. It also does not indicate whether the pledged ETF shares were used to support trading activity, liquidity management, or another financing arrangement.
Why the Filing Matters
Collateralized borrowing allows an institution to obtain financing while pledging assets—such as ETF shares—to secure the loan. The arrangement can provide access to liquidity without requiring the borrower to sell its holdings.
Spot XRP ETFs hold XRP directly and provide investors with exposure to the cryptocurrency through a regulated exchange-traded product. The use of shares in these funds as collateral suggests that the products are being recognized within institutional financing markets, although the filing alone does not establish the scale of broader demand for XRP ETFs.
Limited Information on the Transactions
The nearly $4 billion figure reflects the borrowing reported in connection with the collateralized positions. It should not be interpreted as the amount invested in the four ETFs or as a direct measure of XRP’s market value.
Additional filings or disclosures may be needed to clarify the identity of the borrower, the specific ETFs involved, and the purpose and duration of the financing arrangements.