Mastercard Pilots RLUSD for Instant Credit Card Clearing on XRPL
Ripple formed a well-known alliance with Mastercard, WebBank, and Gemini to enable stablecoin-based credit card settlements on the XRP Ledger using RLUSD.
Quick overview
- Ripple has partnered with Mastercard, WebBank, and Gemini to facilitate stablecoin-based credit card settlements on the XRP Ledger using RLUSD.
- The initiative aims to streamline card transaction settlements by utilizing Ripple's regulated stablecoin, RLUSD, enhancing the integration of blockchain into traditional finance.
- This partnership marks a significant step in using compliant stablecoins for fiat card settlements on public blockchains, showcasing XRPL's capabilities beyond crypto transfers.
- With RLUSD exceeding $1 billion in circulation, this collaboration highlights the growing acceptance of regulated digital assets in banking and payment systems.
Ripple formed a well-known alliance with Mastercard, WebBank, and Gemini to enable stablecoin-based credit card settlements on the XRP Ledger using RLUSD.
The plan will let Mastercard and WebBank settle card transactions more quickly and smoothly by utilizing Ripple’s NYDFS-regulated stablecoin, RLUSD, as the settlement asset. This is one of the clearest examples of blockchain infrastructure being directly integrated into traditional card networks, which strengthens Ripple’s appeal to institutions.
The primary goal of the initiative is to use RLUSD instead of XRPL to settle disputes between Mastercard and WebBank, the Gemini credit card issuer. Once launched, it will be among the first instances of a regulated US bank utilizing a compliant stablecoin to facilitate fiat card settlement on a public blockchain. This shows that XRPL’s speed and finality can support actual financial transactions, not just crypto transfers, and brings bank pipelines closer to on-chain rails.
Ripple states that this move demonstrates its growing influence over modern payment systems. Banks can reduce middlemen, improve liquidity timing, and gain more transparent settlement data by leveraging XRPL’s fast and cheap confirmations. As a result, XRPL is becoming more than just a token network and is positioned to serve as a settlement backbone for regulated finance. RLUSD has already exceeded $1 billion in circulation and is backed by cash and cash-equivalent reserves, regulated by the New York Department of Financial Services.
This partnership builds on previous efforts by Ripple, Gemini, and WebBank to incorporate digital assets into banking products. It also aligns with Mastercard’s long-term strategy to upgrade its network using compliant blockchain solutions instead of unregulated tokens. For banks monitoring the market, this partnership is significant. It shows that when the asset, the issuer, and the participants are all compliant, regulated card brands are willing to experiment with public chain settlement.
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