Gemini taps Ripple for credit line ahead of IPO: CNBC Crypto World

Market Trends & Crypto Performance - Bitcoin fell less than 2% to $116,200, after falling as low as $114,700, following a new all-time high last week [4] - Ether dropped nearly 5% but still traded above $4,300 [5] - XRP fell 3.8% to $3 [5] - Heightened macro concerns triggered more than $500 million in forced selling of long positions in the crypto market [4] Regulatory Developments & Industry Events - The Federal Reserve (Fed) is shifting its supervision practices on crypto, tossing the "novel activities" program used to supervise banks on certain crypto and fintech activities [8] - The Fed strengthened its understanding of crypto activities, related risks, and bank risk management practices [9] - The Genius Act stable coin regulation bill was signed into law last month, establishing a federal framework for stable coins [9][19] - The Wyoming Blockchain Symposium attendance doubled this year, indicating a more crypto-friendly environment [1] Company Specifics (Custodia Bank & Gemini) - Gemini entered a credit agreement with Ripple Labs, initially borrowing up to $75 million with the option to increase to $150 million, with an interest rate of up to 8.5% [7] - Gemini's mid-year total liabilities were more than $2 billion [8] - Custodia Bank is still waiting on a clearing account from the Fed after more than five years [15] - Custodia Bank has a patent for bank-issued stable coins approved in 2020 and is moving to defend its intellectual property [19][21] - Custodia Bank partnered with Vantage Bank and issued the first bank-issued stable coin back in March [21]