XRP is at the center of Ripple’s evolving financial strategy, which now includes a bold move to provide a massive credit facility to crypto exchange Gemini. This development isn’t just a lifeline for a troubled platform—it may signal a deeper institutional expansion using Ripple’s RLUSD stablecoin and the XRP Ledger.
Ripple Offers Gemini a Strategic Credit Line
According to Gemini’s IPO documents, Ripple extended a $75 million credit line to the exchange, with the potential to double up to $150 million. This timely support comes as Gemini faces significant financial hurdles, including $282 million in reported losses and over $2 billion in liabilities during the first half of 2025.
While this appears to be a strategic bailout, notable XRP community figure All Things XRP suggests otherwise. He argues the partnership serves Ripple’s broader stablecoin ambitions—specifically, enabling loan settlements in RLUSD, Ripple’s dollar-pegged stablecoin. If Gemini draws above the $75 million threshold, Ripple reportedly reserves the right to denomination the loan in RLUSD.
This opens the door for IPO-related capital flows to be settled in RLUSD directly on the XRP Ledger (XRPL), a move that echoes Ripple’s earlier partnership with crypto exchange Bullish. In that case, $1.15 billion was settled using RLUSD and USDC, reinforcing XRPL’s stability and institutional reach.
A digital representation of institutional crypto lending and stablecoin payments across blockchain rails.
Ripple Eyes a Trust Bank to Cement Financial Role
Ripple’s stablecoin momentum isn’t the only bold initiative underway. In July, the company took its most dramatic regulatory step to date by filing for a U.S. national trust bank charter. If approved, this would allow Ripple to maintain Federal Reserve accounts, offer insured crypto deposit services, and potentially convert its locked 35 billion XRP escrow into regulatory capital.
Such a development could place Ripple among the top twenty U.S. banks by capital reserve—a powerful shift toward integrating blockchain infrastructure with the broader financial system.
XRP as the Foundation of a Banking Ecosystem
The effects of these strategic moves on XRP itself could be significant. Because all RLUSD settlement activity runs through XRPL, each transaction generates network fees, bolstering ecosystem engagement. This increased usage may reduce Ripple’s need to release more XRP from escrow, improving supply stability and supporting long-term token value.
As outlined by All Things XRP, these steps elevate Ripple beyond just a payment processor. Its integrated strategy across lending, stablecoins, and institutional finance strengthens its influence while turning XRP into the underlying transaction rail of a growing decentralized banking model.
Wall Street Pushback Reflects Turf War
As Ripple makes gains, traditional banking institutions seem wary. Major U.S. banks such as JPMorgan and Bank of America, along with advocacy groups like the Independent Community Bankers of America (ICBA) and the National Community Reinvestment Coalition (NCRC), have formally opposed Ripple’s trust bank application.
Analysts consider this resistance a reflection of a larger battle: Ripple isn’t merely trying to integrate with current infrastructure—it may be aiming to replace large segments of it. As more federal regulators evaluate crypto-native institutions, the resulting decisions could redefine the future of finance and XRP’s role in it.
While this transformation raises questions and hurdles, one thing is becoming clear: Ripple’s expansion is positioning XRP not just as an investment, but as an embedded utility in the architecture of the next-generation financial system.
