US-based cryptocurrency exchange Gemini has announced that it has signed a $75 million loan agreement with Ripple in an application for the initial public offering (IPO) process.
Ripple offers $75 million loans to Gemini in preparation for IPO
Documents filed with the U.S. Securities and Exchange Commission (SEC) show that Gemini reported a net loss of $282.5 million in the first half, a seven-fold increase from the same period last year. Revenues fell from $74.3 million to $67.9 million.
Gemini will be listed on the Nasdaq Stock Exchange under the ticker symbol “Gemi”. If approved, the company will be its third cryptocurrency exchange, after Coinbase (listed on Nasdaq in 2021) and Bullish (BLSH), which recently began trading on the New York Stock Exchange.
Under a loan agreement with Ripple, Gemini has secured a loan of up to $75 million. If certain criteria are met, this amount could increase to $150 million. Each loan is at a minimum of $5 million and has an interest rate of 6.5% or 8.5%. Additionally, loans over $75 million could become sects with Ripple dollar-backed Stablecoin, RLUSD.
The transaction is worth noting as it positions Ripple’s new Stablecoin as a payment tool for major US exchanges. Experts believe Ripple aims to compete with Tether (USDT) and Circle’s USDC in this move.
*This is not investment advice.