tl;dr
Gemini, a major U.S. cryptocurrency exchange, has secured a credit agreement with Ripple Labs to borrow up to $75 million, with potential expansion to $150 million, to enhance liquidity ahead of its IPO. The credit line, carrying up to 8.5% annual interest, can be accessed in increments of $5 millio...
Gemini, a leading U.S. cryptocurrency exchange, has secured a credit agreement with Ripple Labs, allowing it to draw up to $75 million through Ripple’s credit facility. This move comes as Gemini prepares for its upcoming initial public offering (IPO) and aims to strengthen its liquidity. The credit line can be accessed in increments of $5 million or more, carrying an annual interest rate of up to 8.5%. This arrangement is a critical step in Gemini’s strategy to ensure liquidity ahead of its IPO.
Under the agreement, Gemini can borrow the initial $75 million in U.S. dollars, with an option to expand the credit line to $150 million under certain conditions. Importantly, future borrowings could utilize Ripple’s RLUSD stablecoin, a relatively new asset launched in December 2024 that has been gaining momentum within the crypto ecosystem. This feature could accelerate RLUSD’s adoption, particularly among institutional users, marking an important milestone for Ripple’s stablecoin ambitions.
Despite accessing this substantial credit line, Gemini’s recent financial disclosures in its S-1 filing highlight some challenges. The company reported significant losses in the first half of 2025, with liabilities exceeding $2 billion, while cash reserves are approximately $162 million. These figures have sparked concerns regarding Gemini’s overall financial health as it approaches its IPO. Although Ripple’s credit facility offers useful short-term liquidity, Gemini’s long-term financial stability remains a focal point for investors.
Meanwhile, Ripple Labs continues to operate as a privately-held company with no current plans for a public offering. As one of the most influential blockchain firms globally, Ripple’s decision to stay private indicates a focus on long-term growth rather than immediate market capitalization. The partnership with Gemini underscores the growing blend of traditional financial mechanisms and blockchain technology, highlighting Ripple’s expanding role in the evolving financial landscape.