Are XRP ETF shares being used as repo collateral, and did Schwab buy XRP?

The full answer

What does the Schwab money fund filing show?

Bitcoin.com reported on September 9, 2026 that Charles Schwab Family of Funds filed its monthly N-MFP3 portfolio report for the period ended August 31, 2026, and that this September 8 filing lists Grayscale, Canary, Franklin and Bitwise XRP ETFs as repo collateral [1]. Bitcoin.com reported that JPMorgan Securities and BofA Securities are the counterparties on five repurchase agreements worth $3.99 billion [1].

JPMorgan Securities is the counterparty on four of them, at rates of 3.85% and 4.13%, with values of $1.093 billion, $1.198 billion, $400 million and $383 million, Bitcoin.com reported [1]. BofA Securities is 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 [1]. Bitcoin.com wrote that all five repos are non-cleared and are filed under the form’s category for collateral outside Treasuries, government agency paper and cash [1].

The XRP part is small. Bitcoin.com counted roughly 26,000 collateral line items across 757 portfolio positions in the filing; eight of those lines name XRP products, and each is a fraction of a percent of the fund’s net assets [1]. CaptainAltcoin’s rumour check on September 10, 2026 read the filing the same way: it shows XRP ETF shares being used as collateral [2]. Who else holds these ETF shares outright is covered in who owns XRP ETFs and what 13F filings show.

Did Schwab buy XRP?

The filing does not show it. In a repo, securities are used as collateral against a cash loan [2]. Bitcoin.com wrote that Schwab’s money fund did not buy XRP ETFs, because a prime money market fund is not permitted to; the fund lends cash for a short term, and the broker-dealer borrowing that cash posts a basket of securities as security against the loan [1]. CaptainAltcoin wrote that the filing shows XRP ETF shares used as collateral, “not necessarily a direct XRP investment by Schwab,” and that “ETF collateral” does not mean “Schwab bought XRP” [2].

How fast did the XRP ETF collateral grow?

Bitcoin.com’s conservative count of XRP ETF collateral in these filings is $297,945 in October 2025, $89,926 in March 2026, $35,973 in April, $406,991 in May, $1.99 million in June, $2.29 million in July and $8.32 million in August, which it called roughly a 20-fold increase since May [1]. A Cheeky Crypto video published on KuCoin News on September 22, 2026 gave the same path in rounded form: from roughly $36,000 in April to at least $8.3 million by August [3].

The mix changed too. Bitcoin.com reported that August is the first month with all four major US spot XRP ETFs together, and that the counterparties grew from Barclays alone to include BofA and JPMorgan [1]. Earlier entries were 2x XRP products, which Bitcoin.com said land in a collateral basket because somebody was hedging [1]. Bitcoin.com’s figures show collateral of $35,973 in April and $8.32 million in August, a rise of roughly 231 times from a base of tens of thousands of dollars (calculated from those two figures).

Did the dealers choose XRP ETF shares or just include them in a broad eligible basket?

None of the three published sources states how JPMorgan Securities or BofA Securities selected the collateral. The sources give the scale: the BofA basket holding all four XRP funds ran to 1,411 names, and the eight XRP lines sat among roughly 26,000 collateral items [1]. Bitcoin.com wrote that collateral acceptance says a risk desk ran the haircut math and a money fund’s counterparty screen did not object [1]. Those counts fit XRP ETF shares being one eligible security among many in broad baskets, rather than a pledge built around them.

What haircut applied to the ETF shares in the repo?

As of October 1, 2026, no published source gives a haircut figure. Bitcoin.com refers to haircut math without giving a number [1], and the KuCoin News video explains haircuts in general terms [3]. How haircuts on XRP collateral are set more widely is covered in how much you can borrow against XRP, and who sets the haircut.

How do XRP ETF shares compare with bitcoin ETF shares in the same repo baskets?

Bitcoin.com, on September 9, 2026, reported XRP ETF repo collateral in these filings rising from $406,991 in May to $8.32 million in August, and a $919.5 million BofA Securities agreement whose basket runs to 1,411 collateral names [1]. No source reviewed compares XRP with bitcoin ETF shares in the same baskets, so this page makes no such comparison.

Does this create any demand for XRP itself?

The Cheeky Crypto video on KuCoin News said collateral acceptance adds zero direct XRP demand, and that XRP buying only happens when new fund shares are created [3]. The same video said that if dealers can finance XRP ETF inventory more efficiently, spreads can tighten and larger positions may become easier to hold, and it named collateral levels and net fund creations as the two numbers to watch [3]. Bitcoin.com called collateral use a different signal from an inflow number, because inflows say somebody wanted exposure [1]. How new shares bring XRP into a fund is set out in how XRP ETF creations and redemptions work.

What is the case that this matters little?

Bitcoin.com, the outlet that reported the filing, gave the counterweight itself. It wrote that the five major US spot XRP products were carrying a $746.1 million paper loss at the end of June 2026, and that an $8 million collateral line does not offset any of that [1]. The same article said 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 [1]. Whether credit built on XRP can be measured at all, and how much exists, is the subject of how much credit is being created against XRP.