Ripple backs Gemini with $150M credit line as landmark IPO nears

Gemini Ripple loan activity has taken center stage ahead of the exchange’s IPO, with Gemini disclosing a credit facility of up to $150 million backed by Ripple. According to its August 15 S-1 filing with the U.S. Securities and Exchange Commission (SEC), the deal begins with a $75 million Ripple credit line and can be expanded in $5 million increments, giving the crypto exchange fresh financial firepower as it prepares for its public debut.

The agreement permits Gemini to borrow more in RLUSD once the initial limit is reached, provided Ripple consents to the request. This Gemini Ripple credit line must be collateralized and carries an annual interest rate between 6.5% and 8.5%.

Gemini Ripple Loan Provides Flexibility for IPO Launch

Positioning for a Nasdaq debut under the ticker GEMI, Gemini views the Ripple loan as a strategic buffer to support its IPO plans. Notably, the exchange had not drawn on the Gemini Ripple credit line as of the August 2025 filing date. The secured funding from the Gemini Ripple credit line is designed to cushion Gemini against market volatility and provide liquidity flexibility as it enters the public market.

Gemini’s team clarified that the Gemini Ripple credit line is not a direct equity purchase by Ripple nor is it intended as financing for the IPO itself. The Ripple loan provides Gemini with a financial cushion as it moves toward becoming a public company.

Financial Performance and IPO Funding Goals

Recent reports indicate that Gemini is seeking to raise up to $400 million for its IPO with the Gemini Ripple credit line supplementing its financial strategy. The company plans to use some of the IPO proceeds for growth initiatives and the remainder to address existing debts.

According to the SEC filing, Gemini is aiming for a $100 million raise via its Class A common stock IPO. As of June 30, 2025, the company held $589.2 million in cash bolstered by the additional liquidity provided through the Ripple loan.

Despite the Gemini Ripple loan, the company reported a net loss of $282.5 million for the first half of 2025 on revenue of $67.9 million. Transaction fees made up over 65% of this revenue. In the same period last year, Gemini posted a $41.4 million loss on $73.5 million in revenue. The company also claims to manage over $18 billion in assets.

Gemini Ripple Loan Supports Growth Amid Market Challenges

The Gemini Ripple loan is part of a broader strategy to navigate the volatile crypto market. The company’s management believes that potential legal exposures will not materially impact its financial health or operations. However, Gemini acknowledged that fluctuations in crypto valuations and crypto loans including the Gemini Ripple loan have significantly affected its financial results.

Gemini has also announced that it will not pay dividends in the near future choosing instead to reinvest all earnings to fuel growth. The company’s capital expenditures have continued to rise even as operational cash flow remains negative. The Gemini Ripple loan provides additional flexibility to support these investments.

Strategic Focus Moving Forward

Looking ahead, Gemini’s growth strategy centers on increasing monthly active users, boosting trading volume, expanding globally, growing its asset base, and pursuing mergers and acquisitions. The Gemini Ripple loan is expected to play a key role in supporting these objectives ensuring the company has the resources needed to compete and thrive in the evolving crypto landscape.

In summary, the Gemini Ripple loan stands as a crucial element in Gemini’s financial planning offering both security and flexibility as the company prepares for its public debut and future expansion.