Ripple Provides $75 Million Credit Line to Gemini Amid IPO Plans
Gemini's IPO filing has highlighted its financial struggles and its relationship with Ripple. Key points include:
- Gemini reported a net loss of $282.5 million for the first half of the year, up from $41.4 million in the same period last year.
- Revenue decreased to $67.9 million from $74.3 million.
- The exchange plans to list on Nasdaq under the ticker "GEMI," making it the third U.S. crypto exchange to go public after Coinbase and Bullish.
- Gemini secured a $75 million credit line from Ripple Labs, with an option to extend to $150 million based on performance metrics.
- Drawdowns must be at least $5 million, with interest rates of 6.5% or 8.5%, secured by collateral.
- Borrowing can exceed $75 million using Ripple’s RLUSD stablecoin as a settlement option.
This partnership suggests Ripple aims to position RLUSD alongside major stablecoins like USDT and USDC.