Cryptocurrency exchange Gemini has launched an XRP-branded credit card offering up to 4% rewards in the digital asset, while simultaneously expanding access to Ripple's dollar-pegged stablecoin for U.S. customers. The move represents the latest effort by the Winklevoss twins' platform to diversify revenue streams ahead of a planned public offering.
What to Know:
- Gemini's new XRP credit card offers tiered rewards up to 4% back on fuel and rideshare purchases, with select merchant partnerships providing up to 10% returns
- Ripple USD (RLUSD) is now available as a base trading currency for all spot pairs on Gemini's platform for U.S. users
- The partnership comes as Gemini prepares for a public listing, having reported a $282 million net loss in the first half of 2024
The credit card partnership builds on Gemini's existing relationship with Ripple, which has provided the exchange with a $75 million credit facility disclosed in recent IPO filings. Tyler Winklevoss, Gemini's co-founder and CEO, positioned the card as a way to serve the dedicated XRP community.
"We're giving customers and the XRP Army new ways to earn XRP and express their passion, loyalty, and excitement," Winklevoss said in a statement. The card is issued through WebBank, following the same structure as Gemini's other cashback offerings.
The rewards structure mirrors traditional credit card tiers.
Users earn 4% back in XRP on fuel, electric vehicle charging and rideshare purchases.
Dining purchases generate 3% returns, grocery shopping provides 2%, and all other transactions yield 1% back in the cryptocurrency.
Stablecoin Integration Expands Trading Options
Alongside the credit card launch, Gemini has integrated Ripple USD more deeply into its platform infrastructure. The $680 million stablecoin now serves as a base currency for all spot trading pairs available to U.S. customers.
This integration eliminates additional conversion steps for traders moving between RLUSD and other digital assets on the platform.
The change reflects broader industry trends toward stablecoin adoption as trading vehicles.
Ripple CEO Brad Garlinghouse emphasized the practical applications of the expanded partnership. "Fifty-five million Americans own crypto and that number is only increasing as more people look for easier ways to access and use it in their daily lives," he said. "With Gemini, we're making everyday spending a chance to earn and connect with both XRP and RLUSD."
Crypto Market Context and Financial Terms
XRP ranks among the top cryptocurrencies by market capitalization, though its price has remained volatile amid ongoing regulatory developments. RLUSD represents Ripple's entry into the stablecoin market, competing with established players like Tether and USD Coin.
Stablecoins are digital currencies designed to maintain steady value by pegging to traditional assets like the U.S. dollar. They serve as bridges between traditional finance and cryptocurrency markets, offering traders a way to hold dollar-denominated value without leaving crypto exchanges.
The credit card rewards structure follows industry standards for premium cards, though paying in cryptocurrency rather than cash distinguishes Gemini's offering. Traditional cashback cards typically offer 1-2% returns on most purchases, making the 4% rate competitive for specific spending categories.
Public Offering Preparations Drive Expansion
Gemini's new initiatives coincide with preparations for a U.S. public listing. The exchange has expanded its service offerings significantly this year, launching tokenized U.S. stock trading in June and obtaining regulatory approval in Malta last week under the European Union's Markets in Crypto-Assets regulation.
These expansions come despite challenging financial performance. Gemini reported a $282 million net loss for the first half of 2024, according to IPO documentation. The loss reflects broader difficulties facing cryptocurrency exchanges as trading volumes declined from 2021 peaks.
The $75 million credit facility from Ripple, disclosed in the same filings, provides Gemini with additional working capital as it navigates the regulatory approval process for its planned listing.
Market Positioning and Competition
The XRP card positions Gemini to compete directly with other cryptocurrency reward programs. Several major players offer similar products, including Coinbase's debit card and various Bitcoin-focused rewards programs.
However, targeting XRP specifically represents a more focused approach. The cryptocurrency maintains an active community of supporters, often referred to as the "XRP Army," who advocate for wider adoption of the digital asset.
Closing Thoughts
Gemini's XRP credit card and expanded RLUSD integration demonstrate the exchange's strategy of deepening partnerships with major cryptocurrency projects while preparing for public markets. The initiatives target both dedicated XRP supporters and broader cryptocurrency adoption, though success will depend on execution amid ongoing market volatility and regulatory uncertainty.