Ripple and Galaxy Loans Helped MoonPay Handle Demand From Trump Memecoin Launch

Loans from Galaxy and Ripple played a pivotal role in helping crypto exchange MoonPay handle the demand stemming from the launch of Donald Trump's official

Crypto exchange MoonPay was able to handle the demand stemming from the launch of Donald Trump’s official memecoin thanks to loans from Galaxy and Ripple, a new podcast reveals.

According to the podcast, which was released on Feb. 14, MoonPay president Keith Grossman and CEO Ivan Soto-Wright were able to secure a $160 million loan from Galaxy Digital CEO Mike Novogratz and Ripple CEO Brad Garlinghouse to launch the $TRUMP token.

The token was launched on Jan. 18, days before the president’s swearing-in ceremony. It made him the first-ever president to be directly related to a memecoin.

The token’s market capitalization zoomed from nearly $200 million at issuance to over $10 billion within 48 hours, bagging spot and futures listings across exchanges and over $20 billion in trading volumes over two days.

The massive demand came on a Saturday, when MoonPay’s fiat accounts were inaccessible due to the weekend with a public holiday on the following Monday for the swearing-in.

The situation meant MoonPay could not readily access over $100 million in liquidity required to meet TRUMP’s trading demand — leaving a short term loan as the only option to ensure business went as usual.

MoonPay initially estimated that it needed around $100 million in USD Coin stablecoin to meet the demand for the TRUMP token, which was contacted for a loan by Novogratz.

After securing an agreement, MoonPay quickly prepared the necessary documentation and verified their ability to repay after vetting with a BlackRock executive, where MoonPay held its reserve funds.

However, demand for the TRUMP token continued to escalate and first lady Melania Trump’s MELANIA tokens were, too, launched, leading to the $100 million being insufficient to meet liquidity requirements.

That pushed MoonPay to seek another $60 million in funds. Grossman then connected with Ripple’s Garlinghouse, stating he had “underestimated the demand of this Trump token.”

Ripple contributed the additional $60 million needed after a thorough vetting, including a pledge of MoonPay’s Wright for his entire personal assets. MoonPay further had to prove there were no liens on its reserve capital.

MoonPay was able to repay all loans in full on Jan. 21, a Tuesday after the long weekend when it could finally access its reserve funds. The company onboarded 750,000 new users that week.

Prices of TRUMP, despite its blockbuster launch, are down 79% since its Jan. 19 peak.