Ripple has expanded its credit line for cryptocurrency exchange Gemini to $150 million, a significant move for both firms amid Gemini's financial difficulties.
Credit Facility and Gemini's Position
According to the analysis, Ripple extended a secured $75 million credit line to Gemini, which is expandable to $150 million. Currently, no funds have been drawn, but the credit line was included in Gemini’s IPO filing.
The significance of this move lies in Gemini's financial troubles, having recorded $282 million in losses and reported liabilities exceeding $2 billion in the first half of 2025. In this context, the credit line is seen as essential support as the exchange prepares for its Nasdaq IPO.
Connection to RLUSD Adoption
The analysis highlights that Ripple's decision to extend this facility goes beyond helping Gemini. If Gemini draws over $75 million, Ripple can convert the loan to RLUSD, its U.S. dollar-backed stablecoin.
This could establish a pathway for institutional adoption of RLUSD, particularly if Gemini uses the stablecoin to settle IPO flows. The dialogue draws parallels to Ripple’s earlier involvement in Bullish’s IPO, where $1.15 billion was settled through RLUSD.
Ripple's Bank Charter Application
The analysis also discusses Ripple's filing for a U.S. national trust bank charter. If approved, Ripple would be authorized to hold Federal Reserve reserves, offer FDIC-insured crypto deposits, and potentially use XRP held in escrow as regulatory capital.
This could elevate Ripple into the ranks of the top 20 banks in the United States, backed by its 40 billion XRP held in escrow.
Overall, Ripple’s approach to expanding its financial capabilities could have indirect but significant benefits for XRP, increasing its utility and creating positive market momentum.
