Crypto Enthusiast, All Things XRP, recently shared a detailed analysis of Ripple’s $150 million credit line extended to Gemini. In the breakdown, he described the move as significant both for Ripple’s broader financial ambitions and for the potential role of XRP within institutional markets.
According to his assessment, the credit facility is not only a lifeline for Gemini but also a calculated step that aligns with Ripple’s larger strategy of integrating its stablecoin, RLUSD, and positioning itself as a player in U.S. banking infrastructure.
⚠️🚨RIPPLE JUST DID SOMETHING THAT SHOULD TERRIFY JPMORGAN AND THRILL XRP HOLDERS.
A $150M credit line to Gemini.
A federal crypto bank in the making.
This isn’t just big—it’s historic.
Let me break it down. 🧵👇🏻 pic.twitter.com/2AeyylsG3b
— All Things XRP (@XRP_investing) August 21, 2025
Credit Facility and Gemini’s Position
As outlined in the analysis, Ripple extended a secured $75 million credit line to Gemini, expandable to $150 million. No funds have been drawn yet, but the credit line was included in Gemini’s IPO filing.
The significance of this, according to All Things XRP, lies in Gemini’s financial condition. He noted that in the first half of 2025, Gemini recorded $282 million in losses and reported liabilities exceeding $2 billion. In that context, the credit line is described as essential support as the exchange prepares for its Nasdaq IPO.
Connection to RLUSD Adoption
All Things XRP highlighted that Ripple’s decision to extend this facility goes beyond assisting Gemini. If Gemini draws over $75 million, Ripple can convert the loan to RLUSD, its U.S. dollar-backed stablecoin.
He emphasized that this could establish a pathway for institutional adoption of RLUSD, particularly if Gemini uses the stablecoin to settle IPO flows. He connected this to Ripple’s earlier role in Bullish’s IPO, in which $1.15 billion was settled through RLUSD. The analysis suggests that Ripple may be applying a similar model again, but this time with greater implications given Gemini’s upcoming listing.
Ripple’s Bank Charter Application
The analysis also drew attention to Ripple’s filing for a U.S. national trust bank charter in July. If approved, Ripple would be authorized to hold Federal Reserve reserves, offer FDIC-insured crypto deposits, and potentially use XRP held in escrow as regulatory capital.
All Things XRP opined that this could elevate Ripple into the ranks of the top 20 banks in the United States, supported by its 40 billion XRP held in escrow. He described this as a pivotal development, particularly because it would be entirely on-chain and under regulatory oversight.
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Industry Pushback and Competitive Dynamics
In his commentary, All Things XRP noted opposition to Ripple’s charter application from major banking organizations, including the Independent Community Bankers of America (ICBA), the National Community Reinvestment Coalition (NCRC), JPMorgan, and Bank of America.
He interpreted this resistance as stemming from the view that Ripple is not merely seeking to join the financial system but is attempting to restructure its underlying infrastructure.
Benefits to XRP
The analysis concluded that Ripple’s approach carries indirect but meaningful benefits for XRP. Every RLUSD transaction is settled on the XRP Ledger, generating activity and fees in XRP. Increased utility, combined with reduced need for Ripple to sell escrowed holdings, could create favorable momentum for the asset.
All Things XRP summarized Ripple’s overall trajectory as building a crypto-native banking framework, consisting of credit facilities, stablecoin infrastructure, institutional integration, and regulatory structure.
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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