Ripple, Mastercard Test RLUSD for Card Payments in 2025

Ripple, Mastercard Test RLUSD for Card Payments in 2025

Publisher:Sajad Hayati

Key Takeaways

  • Ripple is collaborating with Mastercard, WebBank, and Gemini to test the use of its RLUSD stablecoin for settling fiat card payments on the XRPL platform.
  • This initiative marks a significant step toward integrating stablecoins into mainstream payment systems, with a focus on security and regulatory compliance.
  • The partnership aims to bridge traditional banking with blockchain technology, positioning XRPL as a potential institutional settlement layer.
  • The RLUSD stablecoin has demonstrated steady growth and the XRPL platform currently handles a substantial volume of transactions.

Ripple to Pilot RLUSD for Fiat Card Payments with Mastercard and Gemini

Ripple is embarking on a new initiative to test the functionality of its RLUSD stablecoin for settling fiat card payments. This pilot program involves key industry players including Mastercard, WebBank, and Gemini, and aims to showcase the XRPL platform’s capacity for mainstream payment processing.

The collaboration will leverage the XRPL to handle transactions that settle fiat credit card payments. This partnership signifies a move towards integrating digital assets into the traditional financial infrastructure.

This collaboration is designed to facilitate on-chain settlements for transactions between Mastercard and WebBank, the entity responsible for issuing the Gemini credit card.

‘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,’ said Sherri Haymond, Global Head of Digital Commercialization at Mastercard.

Mastercard views stablecoins as a potential solution for high-security settlement layers that adhere to full regulatory compliance.

Bridging Banks and Blockchain Settlement

This initiative represents the first partnership between a regulated U.S. bank and an on-chain settlement layer. It follows closely after Erebor Bank, a bank with a focus on cryptocurrency, received preliminary approval from the OCC.

The Gemini Credit Card has already launched an XRP edition, serving as a precedent for integrating digital assets with traditional payment platforms. This pilot will demonstrate how a public blockchain can manage a portion of credit card transaction volumes.

‘Banks are uniquely positioned to bridge innovative blockchain technology with the stability of the traditional financial system,’ said Jason Lloyd, President and CEO, WebBank.

According to Monika Long, President of Ripple, regulated stablecoins like RLUSD have the potential to significantly improve settlement processes, potentially opening the door for additional card programs. This development could increase XRPL’s relevance as an institutional settlement layer.

The XRPL network is capable of processing approximately 1,500 transactions per second at a low cost. The RLUSD stablecoin recently increased its total supply to $2 billion, indicating a more measured growth trajectory compared to other stablecoins.

The technical integration of RLUSD is contingent upon further regulatory approvals. Following this, the partners intend to finalize the integration of settlement processes across all involved parties.

XRP Recovers Amidst Market Volatility

Ripple’s native cryptocurrency, XRP, has maintained its position among the top 10 digital assets. Following a recent market downturn, XRP has shown signs of recovery.

Ripple’s primary focus has been on enabling its platform to facilitate transactions at speeds comparable to international banking. However, the actual implementation has largely been limited to retail transfers.

The XRPL platform currently handles retail transactions, with approximately 7,000 active wallets recorded in November. In recent months, the chain has seen around 20,000 daily active users. The mindshare for Ripple’s token has seen a decline of approximately 10% over the past month.

While Ripple continues to aim for widespread influence as a global payment solution, it currently trails behind prominent stablecoins like USDT and USDC, which are extensively used for settlement purposes.

Final Thoughts

Ripple’s latest collaboration with Mastercard, WebBank, and Gemini to test RLUSD for card payment settlements highlights a significant step toward mainstream adoption of stablecoins. This initiative underscores the potential of the XRPL platform as a regulated settlement layer, bridging the gap between traditional finance and blockchain technology.

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