Ripple teams up with Mastercard to test RLUSD stablecoin for credit card settlements
In a landmark move toward integrating blockchain technology into mainstream financial operations, Ripple has launched a pilot program with Mastercard, WebBank, and Gemini to explore the use of its RLUSD stablecoin for credit card transaction settlements. The initiative focuses on utilizing the RLUSD token—issued on the XRP Ledger—for processing payments tied to the Gemini Credit Card, a product offered by WebBank.
This collaboration marks a significant step in merging the traditional financial system with blockchain-based innovations. By leveraging Mastercard’s global payment infrastructure, the project aims to demonstrate how a regulated, blockchain-native stablecoin can enhance the efficiency and transparency of card settlements.
According to Ripple, the RLUSD token is fully compliant with regulatory standards, being issued under the authority of the New York Department of Financial Services (NYDFS) through a Trust Company Charter. Its value is backed one-to-one by cash and cash-equivalent reserves, ensuring the kind of financial stability and transparency necessary for institutional adoption.
The pilot is particularly noteworthy because it could become one of the first examples of a regulated U.S. financial institution using a public blockchain to settle everyday credit card transactions with a regulated stablecoin. This could be a game-changer in how financial institutions process payments, reducing settlement times from days to mere seconds while preserving regulatory safeguards and consumer protections.
Traditionally, card settlement involves a tangled web of intermediaries, clearinghouses, and delayed reconciliations between banks. By contrast, a blockchain-based payment system can offer real-time settlement, reducing operational overhead and improving liquidity management for financial institutions.
Sherri Haymond, Mastercard’s Global Head of Digital Commercialization, emphasized the transformative potential of this partnership. “By working with Ripple, Gemini, and WebBank, we’re integrating a regulated stablecoin into our global network. This opens new opportunities for efficient, secure, and transparent transactions,” she said.
RLUSD’s growing adoption also underscores its relevance in the evolving digital asset ecosystem. Since its inception in late 2024, the stablecoin has reached a circulating supply of over $1 billion, a milestone that signals growing confidence from both institutional and retail participants in the crypto space.
The next phase of the project will involve onboarding RLUSD to the XRP Ledger, a step that requires regulatory clearance. Once approved, Ripple and its partners will begin integrating the stablecoin into Mastercard and WebBank’s existing settlement systems, potentially revolutionizing how fiat transactions are processed across the globe.
Beyond credit card settlements, the implications of this pilot extend to broader use cases. If successful, it could pave the way for stablecoin-based payroll systems, international remittances, and supply chain finance—all conducted on decentralized networks with near-instant finality and enhanced auditability.
This move also reflects a broader trend of financial institutions adopting blockchain solutions not just for speculative purposes, but for real-world applications. As interest rates, inflation, and cross-border friction continue to challenge traditional payment rails, stablecoins like RLUSD offer a compelling alternative that combines the benefits of digital assets with the stability of fiat currency.
Moreover, Mastercard’s involvement adds credibility and scalability to the initiative. With its vast network of merchants and consumers, Mastercard’s infrastructure could act as a catalyst for mass adoption, driving the integration of blockchain-based assets into everyday financial activities.
Gemini’s role adds another layer of innovation. As a regulated crypto exchange, it brings deep industry expertise and a compliant framework that aligns with the pilot’s goals. Its Gemini Credit Card, which already offers crypto rewards, could evolve into a platform for seamless crypto-financial interaction, from spending to settlement.
Meanwhile, WebBank, as the card issuer, plays a critical role in connecting blockchain technology with traditional banking systems. Its participation signals that regulated banks are not just open to blockchain, but actively testing real-world implementations.
As blockchain continues to mature, projects like this could redefine the infrastructure of the financial services industry. The successful deployment of RLUSD in credit card settlements would not only validate the technology but also set a precedent for how stablecoins can be safely and effectively used in regulated environments.
In the months ahead, the industry will be watching closely. This pilot could influence regulatory stances, shape industry standards, and open the door for more banks and payment processors to adopt blockchain-based settlement mechanisms.
Ultimately, Ripple’s RLUSD initiative is more than a technological experiment—it’s a strategic push toward a more efficient, transparent, and inclusive financial future.