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Brad Garlinghouse Responds to Ripple Prime's 'Average Quality' Rating

Ripple CEO Brad Garlinghouse commented on the BBB rating assigned to Ripple Prime by KBRA, highlighting its strengths while acknowledging potential risks.

Daniel Kim
April 3, 2026 1 min read
Brad Garlinghouse Responds to Ripple Prime's 'Average Quality' Rating

Ripple CEO Brad Garlinghouse has addressed the recent investment rating given to Ripple Prime by Kroll Bond Rating Agency (KBRA), which assigned the brokerage division a BBB rating, indicating an "average quality" creditworthiness.

Garlinghouse emphasized the rating as a "clear validation of the strength, reliability, and technology" of Ripple Prime, stating that such recognition builds momentum in the markets.

The BBB rating, which represents the lowest tier of investment grade, reflects moderate risks associated with Ripple Prime. Analysts from KBRA noted that the platform is currently in a growth phase, focusing on clearing and intermediary services in the derivatives and repo markets.

  • Ripple Prime operates as a registered broker-dealer and futures commission merchant (FCM) in the U.S.;
  • It engages in trading exchange-traded derivatives and short-term government bonds, primarily targeting institutional clients;
  • In 2025, it achieved profitability and significantly expanded its balance sheet.

A key factor in the rating was the backing from Ripple, which invested $500 million following the acquisition of Hidden Road, which was rebranded as Ripple Prime after the $1.25 billion deal in October 2025. The company has plans for additional investments, boasting $5 billion in cash and substantial reserves of XRP.

However, KBRA identified concerns regarding Ripple Prime's reliance on a narrow range of financial operations and its close ties to the crypto sector, which may expose it to risks from price volatility and liquidity challenges during market downturns. This is particularly relevant given that XRP's price has fallen over 28% this year, currently trading around $1.3 and nearly 64% below its peak of $3.65 from July 2025, with a market capitalization of approximately $81 billion, according to CoinGecko.

Garlinghouse previously predicted "record results" for Ripple in the upcoming first quarter, signaling optimism despite the current market conditions.

Ripple Prime's Investment Rating: Garlinghouse's Response — Mercation