The XRP community voice, All Things XRP, has highlighted how Ripple’s credit line to Gemini may represent a deeper move than simply supporting an exchange in financial distress.
For context, according to Gemini’s IPO filing, Ripple provided a credit facility worth $75 million, which can expand up to $150 million. This move is significant, given that Gemini reported $282 million in losses and over $2 billion in liabilities in the first half of 2025. The arrangement provides critical liquidity for Gemini as it pushes toward a Nasdaq listing.
In his commentary, All Things XRP suggests that the Gemini deal is less about a bailout and more about advancing Ripple’s stablecoin strategy. He noted that if Gemini draws beyond the initial $75 million, Ripple has the option to denominate the loan in RLUSD, its dollar-backed stablecoin.
This means Gemini’s IPO flows could settle directly in RLUSD. It would mirror Ripple’s earlier arrangement with Bullish, which used RLUSD and USDC to settle $1.15 billion during its own public listing.
Such a move would further drive RLUSD adoption at the institutional level, increasing settlement activity through the XRP Ledger.
Federal Bank in the Making
Meanwhile, Ripple’s ambitions extend beyond lending and stablecoin rails. In July, the company filed for a U.S. national trust bank charter. An approval would allow Ripple to hold Fed reserves, offer FDIC-insured crypto deposits, and potentially use its 35 billion XRP in escrow as regulatory capital.
The XRP community commentator argues that this development could make Ripple rank among the top 20 U.S. banks by capital base.
XRP as the Underlying Rail
Meanwhile, this could have some serious implications for XRP holders. Every RLUSD transaction through the XRP Ledger generates fees and boosts network activity.
All Things XRP believes that increased activity reduces the need for Ripple to release additional XRP from escrow, creating what many see as a long-term bullish cycle for the token. To him, XRP is not merely a digital asset but is the settlement rail behind a suite of banking activities.
The analysis also noted that Ripple is now more than a payments company. In Gemini’s case, the firm is executing a strategy that integrates credit facilities, stablecoin adoption, institutional infrastructure, and regulatory legitimacy.
Resistance from Wall Street
Meanwhile, Ripple’s development has not gone unnoticed by traditional finance. Industry groups such as the ICBA and NCRC, along with major banks including JPMorgan and Bank of America, have voiced opposition to Ripple’s bank charter application.
7️⃣ The resistance is loud.
ICBA, NCRC, JPMorgan, Bank of America—they all oppose the charter.
Why?
Because Ripple isn't just joining the financial system—it's replacing the plumbing.
— All Things XRP (@XRP_investing) August 21, 2025
This tension reflects what the pundit describes as a clash between old and new financial infrastructure. Rather than joining the existing system, Ripple might be looking to replace it, creating resistance from traditional players.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
