Gemini’s S 1 filing reveals a 75M USD credit facility from Ripple. This is a liquidity and governance signal that will be closely read by investors before the roadshow.
Term sheet decoder
Facility size: 75M USD
Probable use of proceeds: working capital, product expansion, compliance and controls
Why it matters: the facility shapes the liquidity stack and tests disclosure rigor while Gemini prepares public market scrutiny
Pro forma liquidity stack for stress days
| Layer | Component | Behavior in stress | What to verify |
|---|---|---|---|
| Tier 1 | Cash and cash equivalents | Immediate buffer for withdrawals | Daily and intraday visibility |
| Tier 2 | 75M USD credit line | Drawn if spreads widen or volumes spike | Covenants and draw conditions |
| Tier 3 | Treasury lines and insurance | Event driven access | Coverage limits and exclusions |
| Tier 4 | Equity raised at IPO | Strategic capital | Timing windows and valuation risk |
Illustration only. Not actual balances.
IPO readiness scorecard
| Dimension | Key questions | What investors want to see |
|---|---|---|
| Reserves clarity | Segregation and attestations | Independent and frequent proofs |
| Revenue mix | Fees vs services vs interest | Less cyclicality and more stable margins |
| Counterparty risk | Facility covenants and backstops | Transparent terms and redundancy |
| Governance | Board and audit committee strength | Real independence and veto power |
| Unit economics | CAC, ARPU, cohort retention | Path to durable margins |
Caption: This split is illustrative. The filing summary does not assign exact line items.
Five questions a buy side PM will ask
What triggers a draw and how often do drills occur
How do reserves backstop intraday outflows without forced selling
What share of growth comes from non trading revenue with stable margins
Which covenants could tighten flexibility in a drawdown
How will disclosures evolve between the S 1 and the first 10 Q
Strategy trees
Base case: the facility remains undrawn, confidence improves, the window to list opens, and the mix tilts toward institutional services
Stress case: volatility rises, partial draws occur, transparency becomes the main valuation lever, and governance gets a spotlight
Red flags vs green flags
| Red flags | Green flags |
|---|---|
| Ambiguous reserve disclosures | Independent attestations on a fixed cadence |
| Funding concentration | Multiple facilities with staggered maturities |
| Heavy reliance on retail trading | Growth in custody, prime, and fiat ramps |
Implementation checklist for Gemini
Publish a plain language FAQ for the facility
Add a change log for disclosures with time stamps
Run and publish periodic liquidity stress tests
Clarify custody, insurance posture, and incident response
