In preparation for its initial public offering (IPO), it has been reported that Gemini has entered into a funding agreement with Ripple.
Funding Agreement Details
According to the filing made with the SEC, Ripple will allow Gemini to borrow funds through credit lines starting at $5 million, with an initial cap of $75 million. Notably, Gemini has already drawn on this arrangement. The interest rate on borrowing may be as high as 8.5%.
Potential Use of RLUSD
The first phase of the program limits borrowing to U.S. dollars, but Gemini has the option to access additional loans in Ripple's stablecoin, RLUSD. Launched in December, the token is gaining traction quickly, and this partnership could accelerate its adoption in institutional finance.
Gemini's Financial Status Before IPO
Gemini is preparing for its market debut amidst significant financial pressure. The filing reveals that as of mid-2025, the company has $162 million in cash against more than $2 billion in liabilities. The credit agreement is seen as a way to bolster liquidity and prepare for investor scrutiny.
The agreement between Ripple and Gemini offers a way to enhance the latter's financial metrics ahead of its IPO and facilitates the introduction of the RLUSD stablecoin in the financial market.
