Ripple is initiating a pilot program with payments giant Mastercard to test the use of its RLUSD stablecoin for settling credit card transactions, specifically those from the WebBank-issued Gemini Credit Card.
Summary
- Ripple partners with Mastercard, WebBank, and Gemini to pilot RLUSD for credit card settlement on the XRP Ledger.
- The trial marks one of the first tests of a regulated U.S. bank using a regulated stablecoin for mainstream card transactions.
According to a press release dated Nov. 5, financial technology firm Ripple has launched a pilot program with Mastercard, WebBank, and Gemini to integrate its RLUSD stablecoin into credit card settlement.
The initiative will see the regulated stablecoin, operating on the XRP Ledger, used to facilitate transactions with WebBank, issuer of the Gemini Credit Card. The partners stated that the project aims to explore how blockchain technology can enhance the efficiency of traditional fiat payment processes.
“Through our partnerships with Ripple, Gemini, and WebBank, we’re using our global payments network to bring regulated, open-loop stablecoin payments into the financial mainstream,” Sherri Haymond, Global Head of Digital Commercialization at Mastercard, said.
RLUSD settlement nears the financial mainstream
If completed, Ripple’s trial with Mastercard, WebBank, and Gemini would represent one of the first instances in which a regulated U.S. bank settles mainstream card transactions using a regulated stablecoin on a public blockchain. That distinction matters because it would mark one of the first instances of a regulated U.S. bank settling mainstream card transactions using a regulated stablecoin on a public blockchain.
Traditional card settlement typically runs on a complex web of clearinghouses and intermediaries that reconcile fiat balances over several days. In contrast, a blockchain-based approach could allow value to move instantly between the card issuer and network while maintaining the same regulatory and consumer protection standards.
RLUSD is issued under a New York Department of Financial Services Trust Company Charter, a significant compliance benchmark. Its value is fully backed by cash and cash-equivalent reserves, providing the stability required for institutional settlement. Since its launch in late 2024, RLUSD has seen its circulation grow to over $1 billion, indicating early market adoption.
Ripple and its partners noted that in the coming months, they will focus on the initial onboarding of RLUSD to the XRP Ledger, a process subject to obtaining the necessary regulatory approvals. Following this, integration planning will begin to incorporate stablecoin settlement into existing Mastercard and WebBank workflows.
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