Ahead of a proposed Initial Public Offering (IPO), US-based exchange Gemini has lined up a revolving credit agreement with Ripple.
As reported by Crypto Eri (@sentosumosaba), the pact permits borrowing requests of at least $5 million, with an initial commitment of $75 million, and potential increases, subject to performance metrics, up to $150 million. Notably, portions exceeding the initial commitment may, with consent, be funded in Ripple’s RLUSD stablecoin.
🚨The @Gemini twins tap @Ripple for a credit line ahead of IPO. The agreement allows lending requests of at least $5,000,000 each, up to an initial aggregate commitment of $75,000,000, adjustable on metrics but not exceeding $150,000,000. Request may use $RLUSD stablecoin.… pic.twitter.com/cGaxXfrEor
— 🌸Crypto Eri ~ Carpe Diem (@sentosumosaba) August 17, 2025
What the Filing Says
The filing describes Gemini’s agreement with Ripple as a secured facility with structured terms. All lending requests must be collateralized, and the borrowing cost is set at either 6.5% or 8.5% annually, depending on conditions.
Crucially, once Gemini’s borrowing goes beyond the $75 million initial commitment, additional requests can be made in Ripple’s RLUSD stablecoin if both sides agree.
This provision expands the use of RLUSD via a formal corporate financing deal. The document also notes that a principal balance was already outstanding as of August 2025, confirming that the arrangement is active.
Why This Matters for XRP and RLUSD
Using RLUSD as an optional settlement leg inside a major exchange’s credit facility strengthens its institutional use case. RLUSD is a U.S. dollar–pegged stablecoin and is live on the XRP Ledger (XRPL) and Ethereum. Ripple has emphasized full reserve backing with monthly attestations, and major exchanges, including Gemini, support RLUSD trading, expanding distribution.
A credible, operational role in a regulated corporate facility can deepen RLUSD liquidity and reinforce confidence among market participants evaluating alternatives to USDT and USDC.
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Implications for the XRP
For XRP, the significance is meaningful. If RLUSD funding becomes active within the facility, more stablecoin flows and treasury operations can touch the XRP Ledger, increasing settlement pathways that coexist with XRP’s native role as the network’s bridge asset and fee token.
While the agreement does not mandate XRP usage, additional RLUSD activity can raise on-ledger utility, attract developers building around fiat-on-chain rails, and improve market depth across XRPL markets. In a pre-IPO context, the association also signals comfort with Ripple’s infrastructure and technology. This can support enterprise adoption around both RLUSD and XRPL.
A prospective public company broadening liquidity options through RLUSD could be a game-changer. For the XRP ecosystem, this is less about short-term price impact and more about building the institutional infrastructure that can raise utility over time and improve adoption.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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