Gemini’s IPO Ambitions Clash With Stark Losses and Ripple Credit Lifeline

Crypto exchange Gemini charges toward an IPO—but its filing reveals brutal losses and a secret Ripple-backed credit deal. Here's the breakdown.

The ugly math behind the IPO push

Gemini's S-1 shows nine-figure hemorrhaging, with Ripple stepping in as an unlikely financial crutch. Not exactly the 'growth story' Wall Street loves.

Ripple's risky bet

The XRP issuer extended a lifeline just as Gemini's losses mounted. Either they see hidden value—or they're stuck holding the bag.

The cynical take

Nothing says 'bull market' like a cash-burning crypto firm rushing to IPO before the music stops. Bonus points for creative accounting.

Massive Losses Underscore a Tough Year

The numbers are rough. Gemini posted a net loss of $282.5 million in the first half of 2025, compared to a $41.4 million loss in the same period last year. Revenue also dropped to $68.6 million, down from $74.3 million. These figures show just how difficult the past year has been, even as markets have begun to rebound. The report points to legal costs, rising headcount, and declining trading activity as the main reasons for the steep losses.

BREAKING#CNBC JUST CONFIRMED LIVE

GEMINI HAS FILED FOR A #NASDAQ IPO WITH #RIPPLE’S BACKING

This MOVE puts $XRP + $RLUSD utility on the global stagepic.twitter.com/N208xUnhF3

— XRP Update (@XrpUdate) August 18, 2025

Ripple Offers a Lifeline With $75 Million Credit Facility

To help shore up liquidity, Gemini secured a $75 million credit agreement from Ripple Labs. It’s a revolving facility that lets Gemini request loans starting at $5 million, with a potential ceiling of $150 million. Once the first $75 million is drawn, Gemini can start borrowing in Ripple’s RLUSD stablecoin. This adds a new layer of flexibility and highlights how crypto-native funding deals are starting to resemble traditional credit lines, just with digital assets in the mix.

Dual-Entity Setup Aims to Bypass Regulatory Friction

Gemini is also getting creative with its legal structure. The company plans to operate through two separate entities. Gemini Trust Company, based in New York, will handle custody and regulated activities. Meanwhile, Moonbase, based in Florida, will operate the main platform used by most customers. This lets Gemini sidestep the strict New York BitLicense requirements without giving up regulatory cover altogether.

IPO Filing Joins a Growing Trend Among Crypto Firms

Gemini’s move to go public follows similar filings from other major players like Circle and Bullish. Both of those firms found receptive markets despite the broader regulatory pressure on the industry. Gemini’s IPO is backed by big-name underwriters including Goldman Sachs, Morgan Stanley, Citigroup, and Cantor Fitzgerald. If it completes the process, Gemini will become the third major crypto exchange to trade publicly, after Coinbase and Bullish.

What the Filing Tells Us About Gemini’s Plan

Despite the sharp losses, Gemini’s IPO shows it’s not backing down. The credit facility from Ripple gives it short-term stability, while the dual-entity structure shows long-term planning. The company is betting that going public now will help it reset, attract capital, and lean into the next wave of institutional crypto growth. Investors will have to decide if that’s a gamble worth taking.

Key Takeaways

• Gemini has officially filed for a Nasdaq listing under the ticker GEMI, signaling its intent to go public despite ongoing challenges.
• The exchange posted a $282.5 million net loss in the first half of 2025, over six times worse than the same period in 2024, as revenue also dropped.
• To help with cash flow, Gemini secured a $75 million credit facility from Ripple Labs, which could expand up to $150 million and allow borrowing in RLUSD.
• Gemini plans to operate through two entities—New York-based Gemini Trust for regulated services and Florida-based Moonbase for the main exchange—to work around strict licensing rules.
• With big-name banks backing the IPO, Gemini aims to rebrand itself as a serious player in the next wave of institutional crypto growth.