XRP is making waves in the crypto space once again as Ripple extends a substantial $75 million credit facility to Gemini, supporting the exchange’s bid to go public. This strategic partnership not only strengthens Gemini’s finances but also signals Ripple’s ambitions in the stablecoin market.

Ripple Supports Gemini Amid IPO Filing

Gemini’s recent filing with the U.S. Securities and Exchange Commission (SEC) has revealed both a deepening financial strain and the backing of a major crypto ally. While preparing to list under the ticker “GEMI” on Nasdaq, the exchange disclosed a net loss of $282.5 million for the first half of the year—almost seven times the $41.4 million loss it suffered during the same period a year ago. Revenue also dipped to $67.9 million from $74.3 million previously.

Despite these financial headwinds, the IPO would make Gemini the third crypto exchange to go public in the U.S., joining the ranks of Coinbase (listed on Nasdaq in 2021) and Bullish (BLSH), which just debuted on the New York Stock Exchange last week.

How the XRP Loan Agreement Works

Central to Gemini’s IPO story is the new credit agreement with Ripple Labs. The deal, finalized in July, allows Gemini access to up to $75 million in loans, with the possibility of increasing the facility to $150 million if certain financial conditions are met.

Every loan drawdown must be at least $5 million and comes with interest rates of either 6.5% or 8.5%, depending on terms, with each borrowing secured by collateral. Notably, as of the filing date, Gemini has yet to utilize any portion of this credit line.

RLUSD Stablecoin Enters the Scene

Ripple’s involvement doesn’t stop at capital support. The agreement includes a provision allowing any borrowings that exceed the initial $75 million threshold to be denominated in RLUSD, Ripple’s new dollar-backed stablecoin. This marks a clear entry of RLUSD into the infrastructure of a major U.S. crypto platform, signaling Ripple’s intent to challenge dominant stablecoins such as USDT and USDC.

By introducing RLUSD to a wider market through high-profile integration, Ripple is actively placing itself in the stablecoin race, aiming to carve out significant market share alongside Circle and Tether.

Ripple lends Gemini $75M, forging closer ties ahead of IPO amid mounting losses.

Implications for Ripple and Gemini

For Gemini, this credit relationship provides a much-needed capital boost as it prepares for its public debut. For Ripple, it elevates the visibility and utility of both its capital and RLUSD, especially in the U.S. regulatory environment where transparency and partnerships are increasingly scrutinized.

With no borrowings drawn yet, the facility currently stands as a testament to Ripple’s financial strength and trust in Gemini’s long-term prospects. As market participants digest this development, all eyes will be on how Gemini leverages this credit line as it moves closer to a Nasdaq listing.

Related: XRP Price: $12M Max Pain for Bears

Ultimately, this deal may lay the groundwork for more widespread adoption of RLUSD and integrate XRP more deeply into the financial fabric of regulated trading environments.