Gemini's $75M Credit Lifeline from Ripple Fuels Risky IPO Push

Ripple Labs has provided Gemini Trust Co. with a $75 million secured revolving credit line ahead of the cryptocurrency exchange’s planned initial public offering (IPO). The credit agreement, disclosed in Gemini’s S-1 filing with the U.S. Securities and Exchange Commission on August 15, 2025, includes provisions that allow Gemini to borrow in U.S. dollars and, potentially, Ripple’s RLUSD stablecoin once the initial $75 million commitment is utilized [5]. The credit facility is structured with interest rates of either 6.5% or 8.5% annually, and all loans are secured by collateral. The agreement also permits the credit limit to increase up to $150 million, subject to performance metrics [5].

Gemini reported a net loss of $282.5 million in the first half of 2025, with revenue falling to $68.6 million, a decline of approximately 7.6% year-over-year [1]. This performance follows a net loss of $158.5 million for the full year 2024, despite a 45% increase in revenue to $142.2 million. The exchange’s losses widened significantly compared to the first half of 2024, when it recorded a net loss of $41.4 million. The losses are attributed to increased legal costs, rising headcount, and declining trading activity [6].

The exchange is seeking to raise capital through its IPO to support operations and repay third-party debt. Gemini disclosed liabilities totaling $2.1 billion as of June 30, 2025, including loans from Galaxy and NYDIG. Proceeds from the offering are intended for general corporate purposes, with a focus on repaying outstanding obligations. The company has applied to list on Nasdaq under the ticker symbol “GEMI” [5].

The IPO filing reflects a broader trend of cryptocurrency firms accessing public markets as investor appetite for digital assets rebounds. Gemini joins a wave of crypto-native companies that have recently gone public, including stablecoin issuer Circle and exchange Bullish. The latter’s IPO in August raised $1.1 billion, with shares surging 228% on the first day of trading, making it the second publicly traded crypto exchange in the U.S., after Coinbase [6]. Circle’s June listing on the NYSE raised over $1.2 billion, with shares rising 472% relative to Bitcoin in the months following its debut [5].

Gemini’s IPO strategy includes operating through a dual-entity structure to navigate regulatory challenges in the U.S. The New York-based Gemini Trust Co. will focus on custody and regulated activities, while the Florida-based entity, Moonbase, will handle the majority of user-facing operations. This approach aims to circumvent the restrictive New York BitLicense requirements, particularly those related to staking services, while maintaining regulatory compliance [6].

Goldman Sachs, Citigroup, Morgan Stanley, and Cantor Fitzgerald are serving as lead underwriters for the offering. While terms of the IPO remain undisclosed, the filing highlights the company’s strategic positioning in a maturing crypto market. Analysts have pointed to growing institutional adoption, favorable macroeconomic conditions, and a warmer political environment under the Trump administration as key drivers behind the recent uptick in crypto IPO activity [5].

Ripple’s involvement in the credit deal underscores the increasing integration of stablecoins into traditional capital markets. Gemini’s use of RLUSD as a potential borrowing vehicle reflects the growing utility of digital stablecoins in financial operations. Ripple’s RLUSD is a U.S. dollar-pegged stablecoin backed by cash equivalents and designed for cross-border payments. Its use in the credit agreement highlights the evolving role of stablecoins in facilitating liquidity and reducing settlement frictions in the crypto ecosystem [5].

The filing also indicates that Gemini is leveraging favorable regulatory clarity in the U.S., including the recent passage of the GENIUS Act, which establishes a regulatory framework for stablecoins. The exchange’s support for stablecoins aligns with broader industry trends, as institutional investors increasingly seek regulated products and long-term market alignment [2].

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[1] Winklevoss twins' Gemini reveals lower revenue and wider ... (https://www.reuters.com/business/finance/winklevoss-twins-gemini-reveals-lower-revenue-wider-loss-us-ipo-filing-2025-08-15/)

[2] Crypto Exchange Gemini Files for U.S. IPO (https://www.tipranks.com/news/crypto-exchange-gemini-files-for-u-s-ipo)

[5] Gemini IPO filing reveals Ripple credit deal, $282m net ... (https://cryptoslate.com/gemini-ipo-filing-reveals-ripple-credit-deal-282m-net-loss-in-2025/)

[6] Gemini files IPO bid amid crypto rally while bleeding $282m (https://finance.yahoo.com/news/gemini-files-ipo-bid-amid-092729866.html)