Cryptocurrency exchange Gemini has announced the acquisition of a $75 million credit line from Ripple to assist with its IPO preparations, providing the company with additional financial flexibility amidst a volatile crypto market.
Terms of the Credit Line from Ripple
Gemini can borrow up to $75 million through the credit line, with the possibility of raising the amount to $150 million if specific performance targets are met. Each loan must be at least $5 million and carries an interest rate of 6.5% or 8.5%, backed by collateral.
Link to RLUSD and Competitive Position
The SEC filing also notes that once borrowing exceeds $75 million, Gemini can use Ripple’s dollar-backed stablecoin, RLUSD, for repayment. This is one of the first times RLUSD is associated with a major U.S. trading platform, putting it in competition with Tether and Circle.
Financial Pressure and IPO Prospects
Gemini is under financial pressure, having posted a net loss of $282.5 million for the first half of 2025. With losses continuing to mount, the Ripple credit line is an important support as they prepare for their IPO. Investors will be closely watching the development of this partnership and RLUSD's ability to compete in the market.
The credit line from Ripple provides Gemini with necessary financial resources ahead of their IPO, which may help them strengthen their market position amidst financial struggles and competition from other stablecoins.
