XRP Ledger is at the heart of Ripple’s latest strategic expansion, a move that could reshape institutional finance and rattle major banks like JPMorgan. With a new credit facility to crypto exchange Gemini and a push for a U.S. bank charter, Ripple is positioning itself as more than a blockchain company—it’s aiming to become an integral part of the banking ecosystem.

Ripple Extends $75 Million Credit Line to Gemini

Ripple recently granted a $75 million credit facility to Gemini, the crypto exchange that’s planning a public listing on Nasdaq. According to Gemini’s IPO filing, this line could eventually double to $150 million. The decision comes as Gemini faces $282 million in losses and carries over $2 billion in liabilities in the first half of 2025, highlighting the significance of this support.

However, analysts believe this is more than a rescue mission. According to All Things XRP, a prominent voice within the XRP community, the deal is designed to further Ripple’s ambitions surrounding its dollar-backed stablecoin, RLUSD. If Gemini taps into funds beyond the initial tranche, the credit could be disbursed in RLUSD—which would effectively anchor IPO settlement flows to Ripple’s ecosystem.

Strengthening RLUSD Adoption and Institutional Utility

This potential settlement through RLUSD marks a broader institutional trend. Ripple previously enabled a $1.15 billion share transaction during Bullish’s IPO using RLUSD in combination with USDC. The Gemini deal could mirror this, further embedding RLUSD within high-level financial operations.

Such moves signal Ripple’s intent to fast-track RLUSD as a dominant stablecoin for institutional use. By pushing more RLUSD transactions across the XRP Ledger, Ripple amplifies utility and drives up network usage. For investors, this could mean increased token burns and fee generation, potentially limiting the need for new XRP releases from escrow.

Ripple’s ongoing efforts in this space include a landmark partnership for custody services. As covered in a previous report, Ripple has joined forces with one of the oldest U.S. banks to provide infrastructure for RLUSD—adding another layer of legitimacy to its ecosystem goals.

Ripple’s blockchain-based payments system is gaining traction in institutional finance.

Ripple’s Bid for U.S. Bank License Raises Eyebrows

Ripple has officially applied for a U.S. national trust bank charter—a move that, if approved, would allow it to operate as a federally regulated financial institution. With this license, Ripple could hold Federal Reserve deposits, offer FDIC-insured crypto accounts, and potentially use its 35 billion XRP held in escrow as part of its regulatory capital base.

This would catapult Ripple into the ranks of the top 20 U.S. banks by capital. As noted by All Things XRP, the implications here are massive: Ripple is evolving from a blockchain transaction facilitator into a full-scale financial institution underpinned by the XRP Ledger.

XRP: More Than a Cryptocurrency

Behind the scenes, XRP plays a critical role in this transformation. Each RLUSD payment made via the XRP Ledger expands the network’s activity and utility. Higher usage means more fees are generated, which in turn maintains token circulation without requiring new XRP releases. This cyclical effect could benefit long-term holders by fostering organic demand while preserving token scarcity.

All Things XRP argues that this roadmap radically changes how XRP should be viewed. It’s not just a digital asset—it’s the settlement rail underpinning an emerging financial institution. Ripple’s holistic approach now integrates stablecoins, institutional lending, regulatory compliance, and infrastructure—all with XRP at the center.

Pushback from Traditional Finance

Ripple’s trajectory hasn’t gone uncontested. Established financial giants like JPMorgan and Bank of America, along with the ICBA and NCRC, are openly opposing Ripple’s bank application. Their concerns are documented in a report about how Ripple and Circle face barriers as they seek federal charters from the Office of the Comptroller of the Currency.

This opposition underscores the friction between traditional banking frameworks and emerging crypto alternatives. Ripple isn’t trying to integrate into the aging financial infrastructure—it’s looking to build a parallel system that could someday replace it.

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

Through regulatory innovation, stablecoin expansion, and XRP-powered infrastructure, Ripple is creating waves that the legacy financial sector can no longer ignore. Whether this bold strategy translates into mass adoption remains to be seen, but its ambition is clear: Ripple aims not only to disrupt but to redefine global finance.