Charles Schwab Filing Reveals $11.39 Million in XRP ETF Collateral Exposure
A regulatory filing from Charles Schwab has disclosed approximately $11.39 million in exposure to XRP exchange-traded funds through collateral supporting institutional financing arrangements.
The disclosure appeared in the Charles Schwab Prime Advantage Money Fund’s Form N-MFP3, filed with the U.S. Securities and Exchange Commission on September 8. The filing covers the money market fund’s portfolio holdings and financing arrangements as of August 31.
The reported exposure does not represent a direct investment by the fund in XRP ETFs. Instead, the ETF shares were received as collateral in repurchase agreements involving Schwab Prime Advantage Money Fund and two Wall Street counterparties.
According to the filing’s underlying XML data, eight collateral positions were tied to XRP ETFs issued by Bitwise, Canary Capital, Franklin Templeton and Grayscale. Together, the positions had a reported value of approximately $11.39 million.
Charles Schwab’s XRP ETF Exposure Came Through Repurchase Agreements
The structure of the transactions is important in assessing what the filing actually shows.
In a repurchase agreement, one party provides securities as collateral in exchange for short-term financing and agrees to repurchase those securities under specified terms. The collateral provides protection to the party supplying the cash if the borrowing counterparty fails to meet its obligations.
In this case, Schwab Prime Advantage Money Fund supplied cash, while the counterparties provided shares of XRP ETFs as security for the arrangements.
As a result, the filing shows that the fund had exposure to regulated XRP investment products through institutional financing activity rather than through a deliberate allocation to XRP ETFs.
The distinction is significant because collateral held in a financing transaction does not carry the same meaning as an investment position acquired for portfolio exposure. The filing therefore indicates the use of XRP ETF shares within an established financial-market structure, rather than evidence that Charles Schwab directly accumulated those products as an investment.
XRP ETFs Gain a Role in Institutional Financing
The disclosure provides another example of how regulated XRP investment products can be used within traditional financial markets.
XRP ETFs are designed to provide investors with exposure to the asset, but their shares can also serve as securities in institutional transactions when accepted as collateral. The Schwab filing shows that shares from four asset managers were included in such arrangements.
That use is distinct from direct cryptocurrency ownership or ETF investment. The money market fund's role in the disclosed transactions was primarily as a provider of cash, with XRP ETF shares pledged by counterparties to support their obligations.
The approximately $11.39 million figure therefore represents collateral exposure associated with the financing agreements as of August 31, rather than a comparable amount of XRP purchased or held directly by the fund.
XRP ETFs Also See Fresh Investor Inflows
The Schwab disclosure came alongside additional investment activity in XRP ETFs.
According to SoSoValue, the five XRP products tracked by the platform recorded nearly $2 million in combined net inflows during Tuesday’s trading session. Those flows represent capital entering the investment products directly and are therefore different from the collateral positions identified in Schwab’s regulatory filing.
Taken together, the developments point to different ways XRP-linked financial products are participating in the broader financial system. Investor inflows reflect demand for the products themselves, while Schwab’s filing shows XRP ETF shares being used in institutional financing arrangements.
The participation of Bitwise, Canary Capital, Franklin Templeton and Grayscale also underscores the range of regulated XRP investment products involved in the disclosed collateral positions.
The SEC filing ultimately identifies approximately $11.39 million of indirect XRP ETF exposure at Schwab Prime Advantage Money Fund through collateralized transactions, rather than a direct investment in the underlying XRP ETF products.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.