Gemini's $75M Ripple Lifeline Exposes Crypto's IPO Gamble

Gemini has disclosed a $75 million credit facility with Ripple, with an option to extend the line to $150 million under specific conditions. The agreement, disclosed in Gemini’s initial public offering (IPO) filing with the U.S. Securities and Exchange Commission (SEC) on August 15, also revealed the exchange’s substantial financial losses. Gemini reported a $282.5 million net loss for the first half of 2025, marking a significant increase from the $41.4 million loss recorded in the same period of 2024. Total revenue for the six-month period stood at $67.9 million, down from $74.3 million in 2024 [1].

Under the terms of the credit agreement with Ripple, Gemini can access loans in increments of at least $5 million, with interest rates set at either 6.5% or 8.5%. The arrangement also includes provisions that allow for lending in Ripple’s RLUSD stablecoin once the initial $75 million threshold is surpassed [2]. This development signals Ripple’s intent to position its stablecoin as a viable alternative to Tether’s USDT and Circle’s USDC, as it gains traction as a settlement option for one of the major U.S. trading platforms [3].

The credit deal with Gemini aligns with broader trends in the crypto sector, where companies are increasingly turning to public markets for capital and visibility. The Winklevoss-founded exchange is set to join Coinbase and Bullish as the third U.S. crypto exchange to go public. Gemini’s IPO filing coincides with a wave of crypto IPO activity, including Circle’s successful debut on the New York Stock Exchange (NYSE) in June and Bullish’s listing just a week prior. Analysts have attributed the renewed interest in crypto IPOs to improved regulatory clarity and a more favorable political environment following President Donald Trump’s return to the White House [2].

Gemini has also adopted a dual-entity structure to navigate regulatory challenges, particularly in New York, where restrictive BitLicense rules limit staking services. The firm’s operations will be split between Gemini Trust in New York and Moonbase in Florida, with Moonbase serving as the primary platform for most users. This structural approach allows Gemini to maintain flexibility while addressing state-level regulatory complexities [2].

Goldman Sachs, Citigroup, Morgan Stanley, and Cantor are serving as lead bookrunners for Gemini’s IPO, though the terms of the offering remain undisclosed. The offering is subject to approval by the SEC and prevailing market conditions. The move reflects broader institutional confidence in the crypto sector, with analysts like Bitwise’s Matthew Hougan citing growing investor demand, institutional adoption, and a more supportive regulatory climate as key drivers for the 2025 crypto IPO wave [2].

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[1] Gemini Reveals $75M Credit Facility From Ripple as ... (https://www.coindesk.com/business/2025/08/19/ripple-extends-usd75m-credit-facility-to-gemini-as-exchange-pursues-ipo)

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

[3] Crypto Exchange Gemini Has $75 Million Credit Line With ... (https://www.pymnts.com/cryptocurrency/2025/crypto-exchange-gemini-discloses-75-million-credit-line-with-ripple/)