Gemini secures $75M credit line from Ripple before Nasdaq IPO
Gemini has recently secured a credit line of $150 million from Ripple in preparation for its imminent Nasdaq IPO. The arrangement includes an initial commitment of $75 million and allows for borrowing requests starting at $5 million. The credit line comes with an annual interest rate ranging between 6.5% and 8.5%, dependent on prevailing market conditions, and can be denominated in either U.S. dollars or Ripple’s RLUSD stablecoin, with the latter necessitating mutual agreement between the two entities. This agreement signifies a significant milestone for Ripple as it extends the utility of RLUSD within a major crypto exchange’s credit infrastructure. RLUSD, a stablecoin pegged to the dollar and built on both the XRP Ledger and Ethereum, has already found a home within Gemini’s operations. The exchange’s option to settle parts of the credit line in RLUSD highlights the increasing institutional embrace of the stablecoin, potentially boosting its liquidity and utility.
Furthermore, this collaborative effort could lead to heightened on-chain activity for Ripple’s XRP through RLUSD. The prospect of an upswing in stablecoin flows interacting with the XRP Ledger could enhance its settlement channels and foster increased developer engagement, indirectly bolstering the overall ecosystem. Notably, this move indicates faith in Ripple’s infrastructure, which could pave the way for wider enterprise adoption of both RLUSD and the XRP Ledger.
Gemini’s pursuit of an IPO unfolds against a backdrop of financial challenges. The company disclosed a staggering net loss of $282.5 million during the first half of 2025, a substantial increase from $41.4 million during the same period in 2024. These losses mirror the broader struggles faced by crypto exchanges in light of heightened regulatory oversight and market unpredictability. In response, Gemini has initiated a corporate restructuring, dividing its operations into Gemini Trust in New York and Moonbase in Florida. This strategic move aims to navigate New York’s stringent BitLicense requirements and streamline regulatory compliance practices.
The IPO process is being supported by prominent investment banks, including Goldman Sachs, Citi, Morgan Stanley, and Cantor Fitzgerald. A successful IPO listing would position Gemini as the third U.S.-based crypto exchange to go public, following in the footsteps of Coinbase and Bullish. The listing promises to infuse vital capital into Gemini, fortifying its growth strategy and reinforcing its competitive stance in the cutthroat crypto trading sphere. This development underscores the company’s resilience and commitment to navigating challenges while capitalizing on opportunities for expansion and market consolidation.
