Overview

Gemini filing for its IPO has brought attention to payments giant Ripple, revealing a $75 million line of credit alongside a substantial financial loss.

Key Points:

• Gemini’s IPO filing shows a credit line from Ripple worth $75 million.
• First-half loss stands at $282.5 million, significantly rising from a $41.4 million loss a year prior.
• The credit agreement allows for loans up to $150 million, potentially using Ripple’s RLUSD stablecoin.

On August 15, documents sent to the U.S. Securities and Exchange Commission (SEC) revealed this credit line amid Gemini’s financial struggles, with total revenue decreasing from $74.3 million to $67.9 million. The company aims to utilize the ticker ‘GEMI’ on Nasdaq, joining Coinbase and Bullish in going public.

Ripple’s Involvement

Gemini disclosed its credit agreement with Ripple Labs in July that enables borrowing of up to $75 million, with extensions possible.

Implications

This credit arrangement prominently positions RLUSD for potential use as a settlement method on a major U.S. trading platform.