Key Takeaways
- Ripple and Mastercard are testing RLUSD stablecoin settlements for credit cards on XRPL.
- Regulatory approval is required before integration into Mastercard and WebBank systems.
- This could be among the first regulated U.S. bank transactions using a stablecoin on a public blockchain.
Ripple Labs (XRP) is teaming up with Mastercard to pilot RLUSD stablecoin settlements for credit card payments on the XRP Ledger (XRPL). This move aims to modernize traditional payment systems, enabling faster, regulated, blockchain-based settlement for fiat transactions via the Gemini Credit Card.
RLUSD Integration and Regulatory Steps
The partnership will first involve RLUSD onboarding on the XRPL, pending regulatory approvals. Once cleared, Mastercard and WebBank will integrate RLUSD into existing settlement workflows. Sherri Haymond, Mastercard’s Global Head of Digital Commercialization, emphasized that the initiative follows a principled approach, prioritizing consumer protection and full regulatory compliance.
Also Read: Ripple’s RLUSD Hits $1B — But Is It Too Late to Join the Stablecoin Race?
A Milestone for Stablecoin Payments
RLUSD has gained significant traction since its launch, surpassing $1 billion in circulation. The collaboration could mark one of the first instances of a regulated U.S. bank settling card transactions with a stablecoin on a public blockchain. Dan Chen, CFO at Gemini, highlighted that the project bridges blockchain technology and everyday spending, demonstrating real-world applications of digital assets.
Also Read: Tether Backs Fizen in Bold Move to Bring Stablecoin Payments to the Masses
Market Impact
Following the announcement, Ripple’s XRP token rose nearly 2%, while Mastercard stock dipped slightly. Investors are watching closely as this experiment could influence both crypto adoption and traditional financial infrastructure.
Conclusion
The Ripple-Mastercard RLUSD collaboration represents a pivotal step in mainstreaming stablecoin usage for everyday payments. If successful, it could reshape fiat settlement, increase blockchain adoption, and provide consumers with faster, more secure transaction options.
