Key Takeaways
- Schwab’s Sept. 8 N-MFP3 filing lists Grayscale, Canary, Franklin and Bitwise XRP ETFs as repo collateral.
- JP Morgan and Bofa Securities are the counterparties on five repurchase agreements worth $3.99 billion.
- XRP ETF collateral rose from $35,973 in April to at least $8.3 million by Aug. 31.
What the Filing Shows
Charles Schwab Family of Funds recently filed its monthly N-MFP3 portfolio report, covering the period ended Aug. 31. Inside it, the Schwab Prime Advantage Money Fund discloses roughly 26,000 individual collateral line items across 757 portfolio positions. Eight of those lines name XRP products. Four issuers appear:
- Grayscale XRP Trust ETF
- Canary XRP ETF
- Franklin XRP ETF
- Bitwise XRP ETF
They span five separate repurchase agreements. JP Morgan Securities is the counterparty on four, at rates of 3.85% and 4.13%, with values of $1.093 billion, $1.198 billion, $400 million, and $383 million. Bofa Securities is the counterparty on the fifth, a $919.5 million agreement at 4.15% whose basket runs to 1,411 collateral names and is the only one holding all four XRP funds at once.
All five are non-cleared, and all five are filed under the category the form reserves for collateral falling outside Treasurys, government agency paper and cash. Each represents a fraction of a percent of the fund’s net assets.
Lastly, it needs to be made clear that Schwab’s money fund did not buy XRP ETFs since a prime money market fund is not permitted to. Instead, the fund lends cash on a short-term basis; the broker-dealer borrowing that cash posts a basket of securities as security against the loan. XRP ETF shares are turning up inside those baskets.
How Much, Exactly
On the conservative front, XRP ETF collateral in these filings ran $297,945 in October 2025, $89,926 in March 2026 and $35,973 in April. It then turned as follows:
- $406,991 in May
- $1.99 million in June
- $2.29 million in July
- $8.32 million in August
That is roughly a 20-fold increase since May.
The composition changed as well given the early entries were leveraged and 2x XRP products, the kind of instrument that lands in a collateral basket because somebody was hedging. August is the first month in which all four major U.S. spot XRP ETFs appear together, and the counterparty list has widened from Barclays alone to Bofa and JPMorgan.
Why Collateral Matters
Repo talk may be unglamorous, but it represents the plumbing side of the whole equation. In this regard, acceptance into tri-party collateral baskets is how an asset stops being a standalone product and starts being something the short-term funding market handles as ordinary inventory.
The scale deserves honesty, as disclosed institutional ownership of XRP ETFs remains thin and concentrated, with Goldman Sachs, Millennium Management, Intesa Sanpaolo and Jane Street accounting for the majority of the top 30 holders. The five major U.S. spot XRP products were carrying a $746.1 million paper loss at the end of June. An $8 million collateral line does not offset any of that.
That said, it is a different signal than an inflow number because inflows say somebody wanted exposure. Collateral acceptance says a risk desk ran the haircut math and a money fund’s counterparty screen did not object. With the Senate holding a cloture vote on the CLARITY Act on Sept. 15, and an SEC order this month naming XRP an eligible commodity under Nasdaq Texas listing rules, September’s filing is the next major signal to watch out for.
Credit: Source link
