Gemini reveals major credit deal with Ripple in IPO filing despite reporting sharp financial losses.
- Gemini received a $75 million credit line from Ripple.
- The exchange plans to go public using the ticker “GEMI”.
- Ripple’s RLUSD stablecoin may enter major exchange use.
Gemini Plans to Go Public Amid Losses
Crypto exchange Gemini has filed to go public on the Nasdaq stock exchange. The new stock ticker will be “GEMI”. The filing showed a sharp financial drop — a $282.5 million loss in the first half of the year. Last year, in the same period, the company lost only $41.4 million. Revenue also fell, dropping to $67.9 million from $74.3 million.
Ripple Offers Credit Line to Gemini
One key detail in the filing was a $75 million credit deal between Gemini and Ripple Labs. The agreement, made in July, gives Gemini access to loans of at least $5 million per draw. The interest rate is either 6.5% or 8.5% depending on the loan terms. Gemini can ask to extend the credit line up to $150 million if certain goals are met. As of now, the company has not taken any loans.
Ripple’s Stablecoin May Compete With USDT and USDC
Once Gemini borrows over the first $75 million, more loan requests can be paid in Ripple’s RLUSD stablecoin. RLUSD is backed by the U.S. dollar. This move places RLUSD in direct competition with top stablecoins USDT (by Tether) and USDC (by Circle). Using RLUSD as a settlement option at a major U.S. exchange like Gemini may help Ripple grow its stablecoin’s market use.
Gemini Could Become the Third Public Crypto Exchange in the U.S.
Gemini would join Coinbase and Bullish as the only crypto exchanges publicly listed in the U.S. Coinbase went public in 2021, while Bullish made its debut on the New York Stock Exchange just a week ago. The listing shows continued interest from crypto firms in public markets, even as revenue and growth slow across the sector.
Source: coindesk.com
