Ripple, Galaxy Step In With $160M Loan to Keep MoonPay Afloat Amid TRUMP Memecoin Frenzy
When Donald Trump’s official memecoin, TRUMP, launched on Jan. 18, it triggered an unprecedented wave of demand that pushed its market cap from $200 million to over $10 billion in just 48 hours. But behind the scenes, crypto payments provider MoonPay was scrambling to keep up, forced to secure $160 million in emergency funding from Ripple and Galaxy executives to meet liquidity needs, according to a newly released podcast.
MoonPay serves as the exclusive crypto payments provider for Moonshot, the platform that hosted TRUMP’s surprise debut. The launch, which took place just days before Trump’s inauguration, marked the first time a sitting U.S. president had been directly associated with a memecoin. The token’s rapid rise also led to over $20 billion in combined spot and futures trading volume within two days.
However, the timing of the launch created a major problem—MoonPay’s fiat accounts were inaccessible due to the weekend, and an upcoming public holiday for the swearing-in meant funds wouldn’t be available until Tuesday. That left the company unable to access the more than $100 million in liquidity required to support the soaring demand for TRUMP.
To prevent a liquidity crisis, MoonPay President Keith Grossman, CEO Ivan Soto-Wright, and CFO Mouna Siala sought a $100 million loan in USDC. They reached out to Galaxy Digital’s Mike Novogratz, who agreed to provide the funds after MoonPay’s reserves were vetted by BlackRock.
But as the weekend continued, trading activity only intensified, especially with the unexpected launch of MELANIA, a memecoin linked to First Lady Melania Trump. The initial loan was no longer enough, forcing MoonPay to seek an additional $60 million. Grossman then contacted Ripple CEO Brad Garlinghouse, admitting they had underestimated the token’s demand.
Ripple agreed to provide the extra funding, but only after a rigorous review process. The deal required a personal asset pledge from Soto-Wright and verification that MoonPay’s reserve funds were unencumbered.
MoonPay fully repaid both loans by Jan. 21, once its fiat accounts were accessible again. In the process, the company onboarded 750,000 new users in a record-breaking week.
Despite the hype surrounding its launch, TRUMP has since seen a steep decline, with prices down 79% from their Jan. 19 peak.
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