Ripple, Galaxy Execs Provided $160M Loan to MoonPay to Support TRUMP Memecoin Launch

Ripple and Galaxy Digital executives played a critical role in ensuring liquidity for MoonPay during the high-demand launch of Donald Trump’s official memecoin, TRUMP, according to a newly released podcast. The $160 million loan helped the crypto payments firm sustain record-breaking trading volumes after the token’s January 18 issuance.

Unprecedented Demand for TRUMP Memecoin Strains MoonPay’s Liquidity

TRUMP’s surprise launch made Donald Trump the first U.S. president directly linked to a memecoin. The token debuted just days before his swearing-in ceremony, triggering an extraordinary market response.

Within 48 hours of its issuance, TRUMP’s market capitalization skyrocketed from $200 million to over $10 billion, with trading volumes exceeding $20 billion. The token was swiftly listed across major exchanges in spot and futures markets, amplifying demand.

However, the timing of the launch presented a major liquidity challenge for MoonPay. The surge in TRUMP transactions occurred on a Saturday, meaning the firm’s fiat accounts were inaccessible due to the weekend, compounded by a public holiday on Monday for the presidential inauguration.

As a result, MoonPay could not readily access over $100 million in liquidity required to meet the trading demand, forcing the company to seek short-term financing.

MoonPay Secures Emergency Loans from Galaxy and Ripple

With the firm facing an immediate cash crunch, MoonPay President Keith Grossman, along with CEO Ivan Soto-Wright and CFO Mouna Siala, estimated that they needed approximately $100 million in USD Coin (USDC) stablecoin to continue operations.

The team reached out to Galaxy Digital’s CEO, Mike Novogratz, for a quick loan agreement. Once terms were settled, MoonPay swiftly finalized documentation and secured repayment approval from a BlackRock executive, where the company held its reserve funds.

However, demand for TRUMP continued escalating, and the launch of First Lady Melania Trump’s memecoin, MELANIA, further compounded the liquidity strain. The initial $100 million loan proved insufficient, prompting MoonPay to seek an additional $60 million.

At this point, Grossman turned to Ripple CEO Brad Garlinghouse, admitting that he had underestimated demand for the Trump token. After conducting a thorough vetting process, Ripple agreed to provide the extra $60 million, contingent upon MoonPay’s CEO pledging his personal assets as collateral and verifying that no liens existed on the firm’s reserve capital.

MoonPay Repays Loans as TRUMP Token Prices Collapse

MoonPay fully repaid both loans on January 21, the first business day after the long holiday weekend, when it could finally access its reserve funds. During that record-breaking week, the firm onboarded 750,000 new users, highlighting the surge in retail crypto interest.

Despite its explosive debut, TRUMP has since faced a steep decline, with its price plunging 79% from its January 19 peak.

The memecoin’s volatility has reignited debates over speculative crypto assets, even as the market continues to witness a growing appetite for politically themed digital assets.