Shares in four US spot XRP exchange-traded funds (ETFs) have been included in collateral baskets backing almost $4bn (£3bn) of borrowing from a Charles Schwab money market fund, according to its latest monthly filing.
The details were disclosed in the Charles Schwab Family of Funds’ N-MFP3 portfolio report, covering the period ending 31 August. The filing shows that the Schwab Prime Advantage Money Fund held about 26,000 individual collateral lines across 757 portfolio positions.
Eight of those lines refer to XRP products, with four issuers represented.
The XRP-related securities were spread across five separate repurchase agreements, or repos. JP Morgan Securities was the counterparty on four of them. Those agreements carried interest rates of 3.85% and 4.13%, with reported values of $1.093bn, $1.198bn, $400m and $383m.
The fifth agreement was with Bofa Securities. It was worth $919.5m and carried a rate of 4.15%. Its collateral basket contained 1,411 different securities and was the only agreement to include all four XRP ETFs at the same time.
All five transactions were classified as non-cleared. They were also recorded in the section of the filing reserved for collateral other than US Treasury securities, government agency debt and cash. Each deal represented less than 1% of the money fund’s net assets.
The filing does not mean Schwab’s money fund bought the XRP ETFs. A prime money market fund is not permitted to make that type of investment. Instead, the fund lends cash for short periods, while the broker-dealer taking the loan provides securities as protection against the borrowing. In this case, XRP ETF shares appeared within those wider collateral baskets.
The value of XRP ETF collateral recorded in the filings was $297,945 in October 2025, $89,926 in March 2026 and $35,973 in April. The figure then rose sharply, increasing by roughly 20 times from May onwards.
The type of XRP product being used also changed. Earlier entries involved leveraged and 2x XRP funds, securities that can enter collateral pools when a market participant is hedging exposure. August was the first month in which all four major US spot XRP ETFs appeared together. The counterparty group also expanded from Barclays alone to include Bofa and JP Morgan.
Although repo-market activity is less visible than ETF inflows, it offers an indication of how assets are treated within short-term funding markets. Being accepted into a tri-party collateral basket means an investment product is no longer viewed solely as a standalone fund. It can also be handled as ordinary inventory by financial institutions providing short-term finance.
The scale of the development remains limited. Disclosed institutional ownership of XRP ETFs is still relatively small and concentrated, with Goldman Sachs, Millennium Management, Intesa Sanpaolo and Jane Street accounting for most of the top 30 holders.
The five leading US spot XRP products were carrying a combined paper loss of $746.1m at the end of June. An $8m collateral line does not materially offset those losses.
However, collateral acceptance sends a different message from ETF inflows. Inflows indicate that investors wanted exposure to XRP. Collateral use suggests a risk desk assessed the relevant haircuts and that the money fund’s counterparty checks raised no objection.
The Senate is due to hold a cloture vote on the CLARITY Act on 15 September. An SEC order issued this month also named XRP as an eligible commodity under Nasdaq Texas listing rules. Against that background, the next filing is expected to be closely watched as a further indication of how XRP ETFs are being treated by the financial system.
