Schwab Money Fund's XRP (XRP) ETF Collateral Climbs to $8.3 Million

Four XRP ETFs Enter Repo Collateral

A monthly N-MFP3 portfolio filing from Charles Schwab's Prime Advantage Money Fund shows that shares of four US spot exchange-traded funds tied to XRP (XRP), Ripple's cross-border settlement asset, are now pledged as collateral in repurchase agreements worth a combined $3.99 billion. The report, dated as of August 31 and filed with the SEC on September 8, discloses roughly 26,000 individual collateral line items across 757 portfolio positions — and eight of them are XRP-linked products. The issuers named are the Grayscale XRP Trust ETF, the Canary XRP ETF, the Franklin XRP ETF and the Bitwise XRP ETF, marking the first time all four major US spot funds have appeared together in the same filing.

Five separate repo agreements sit behind the cash loans. JPMorgan Securities is counterparty to four of them, sized at $1.093 billion, $1.198 billion, $400 million and $383 million, with rates between 3.85% and 4.13%. BofA Securities holds the fifth, a $919.5 million agreement at 4.15% backed by a collateral basket of 1,411 assets — the only deal in the filing that includes all four XRP funds at once. All five transactions are non-cleared and classified in a category reserved for collateral outside Treasuries, agency paper and cash; each represents only a fraction of a percent of the fund's net assets. The mechanics matter here: prime money market funds are barred from buying XRP ETFs outright. Instead, the fund extends short-term cash and the borrowing broker-dealers pledge baskets of securities as loan guarantee — XRP ETF shares are simply turning up inside those baskets. As the latest development in XRP ETF adoption, it signals that short-term funding markets now treat the asset as ordinary inventory.

Collateral Grew 20-Fold Since May

The same filing itemizes the XRP-linked collateral: approximately $1.01 million in Grayscale XRP Trust ETF shares, $3.06 million in Canary XRP ETF shares and roughly $702,000 in Franklin XRP ETF shares — about $4.8 million across those three line items, within the broader $8.32 million total the document discloses. The trajectory is the more telling signal. Successive filings show XRP ETF collateral of $297,945 in October 2025, $89,926 in March 2026 and a mere $35,973 in April, before the figure climbed to $406,991 in May, $1.99 million in June, $2.29 million in July and at least $8.32 million by August 31 — a roughly twenty-fold increase from May in a single quarter. The composition shifted too: earlier baskets held 2x leveraged XRP products, parked there by parties running hedges, while August brought the first simultaneous appearance of all four spot funds and a counterparty roster that expanded from Barclays alone to include Bank of America and JPMorgan.

The interest is not confined to one money fund. Clear Creek Financial Management disclosed 11,621 shares of the Bitwise XRP ETF for the quarter ended June 30, and Leisure Capital Management reported 16,745 shares of the Franklin XRP ETF in its second-quarter Form 13F. Beacon Pointe Advisors filed its Q2 13F on August 18, and Brookstone Capital Management has likewise disclosed XRP ETF exposure. The amounts are modest by large-asset-manager standards, but the recurrence across multiple filings points to widening adoption, echoing exchange-level signals such as Coinbase's XRP balance jump of 4,870% to 5.57B on wallet relabeling. Price action has yet to confirm the trend: XRP trades roughly 60% below its all-time high, underperforming the broader altcoin market. Readers tracking the market in real time can follow live spot and futures prices on MEXC.

CLARITY Vote Is the Next Catalyst

The significance here is plumbing rather than flows. Collateral acceptance means risk desks have run the haircut math and counterparty screens have cleared the asset — a different signal from inflows, which merely express demand for exposure, and one that cuts through much of the FUD around XRP's institutional depth. Scale still warrants candor: disclosed institutional holdings remain thin and concentrated, with Goldman Sachs, Millennium Management, Intesa Sanpaolo and Jane Street dominating the top 30 holders, and the five largest US spot XRP products carrying $746.1 million in cumulative losses by end of June. The next catalyst is regulatory: the Senate's September 15 cloture vote on the CLARITY Act and the SEC's order designating XRP an eligible commodity under Nasdaq Texas listing rules. Money-market plumbing is the unglamorous base layer bull markets are built on — September's filings will show whether this collateral line keeps climbing.