Mastercard & Ripple Launch RLUSD Stablecoin Pilot: Instant Credit Card Settlements on XRP Ledger
Mastercard Pilots RLUSD Stablecoin Settlements on XRP Ledger, Paving Way for Real-Time Credit Card Transactions
Mastercard has taken a significant step toward integrating blockchain technology into everyday payments by piloting settlements using the RLUSD stablecoin on the XRP Ledger. The initiative, announced at Ripple’s Swell 2025 conference on Wednesday, involves a partnership between Mastercard, Ripple, Gemini, and WebBank. The pilot aims to explore the viability of using a regulated U.S. stablecoin for credit card transaction settlements on a public blockchain.
Introducing RLUSD and Its Role in Payments
RLUSD, which launched in December 2024 under New York's Trust Charter, is a fully regulated stablecoin backed 1:1 by cash and cash equivalents. Since its launch, RLUSD has already achieved more than $1 billion in circulation, demonstrating growing adoption among both institutional and retail users. By integrating RLUSD with the XRP Ledger, Mastercard and its partners aim to drastically reduce the time it takes to settle transactions compared to traditional banking rails.
Ripple President Monica Long highlighted that the goal of the pilot is to bring blockchain-level speed and efficiency to existing payment infrastructures. "Consumers are already familiar with credit cards and digital wallets," Long said. "Our work with Mastercard and WebBank aims to improve these experiences by using a secure, regulated stablecoin that can settle instantly rather than the typical one to three days required in conventional banking."
How the Pilot Works
WebBank, a U.S. regulated financial institution, will test the settlement of Mastercard transactions using RLUSD on the XRP Ledger. Gemini, which issues WebBank’s credit card, will provide the necessary infrastructure for processing payments and token transfers. This pilot represents one of the first instances in which a traditional U.S. bank will directly settle card transactions using a regulated stablecoin on a public blockchain.
Additionally, Gemini’s existing credit card offerings already include an XRP edition, allowing users to earn rewards in XRP for everyday spending. Gemini also supports a Solana edition of its card, with up to 4% back in SOL token rewards. The RLUSD pilot will expand this digital asset integration by adding a regulated, USD-backed stablecoin to the ecosystem.
Benefits of Blockchain-Based Settlements
The integration of RLUSD with the XRP Ledger offers several key advantages:
-
Real-Time Settlement: Unlike traditional credit card settlements, which often take multiple days, RLUSD transactions can settle in real-time on the blockchain. This reduces liquidity constraints for merchants and financial institutions.
-
Cross-Border Efficiency: Blockchain-based settlements eliminate the need for intermediary banks in international transactions, potentially lowering costs and reducing delays.
-
Regulatory Compliance: As a U.S.-regulated stablecoin, RLUSD ensures compliance with existing financial regulations while leveraging the transparency and immutability of blockchain technology.
-
Enhanced Consumer Rewards: By combining blockchain settlement with existing digital asset reward programs, users can enjoy faster, more seamless token rewards.
Fernando Vazquez, President of Capital Markets at Chainlink Labs, emphasized the transformative potential of these developments: “Integrating regulated stablecoins into mainstream payment networks opens the door for real-time settlement solutions, especially for cross-border transactions where delays are costly. This represents a major step forward for the adoption of blockchain in everyday finance.”
Mastercard’s Broader Digital Asset Strategy
This pilot is part of Mastercard’s larger push into the digital asset space. Earlier this year, the company partnered with Chainlink to enable direct on-chain cryptocurrency purchases through secure fiat-to-crypto conversions. Mastercard has also collaborated with Humanity Protocol to expand access to open finance technologies.
The RLUSD pilot aligns with Mastercard’s ongoing strategy to integrate blockchain and digital assets into traditional finance, offering consumers faster, more transparent, and potentially lower-cost transactions. While the pilot is still in its early stages, success could pave the way for broader adoption of stablecoins in mainstream payment networks.
Regulatory Outlook
The RLUSD integration is subject to ongoing regulatory approvals. Given that RLUSD is issued under New York’s Trust Charter, the pilot already meets several compliance requirements, but scaling to a global card network may require additional oversight. Observers note that such initiatives could set a precedent for other U.S. banks and financial institutions considering blockchain-based settlement solutions.
What This Means for Consumers and the Industry
For everyday consumers, the pilot could eventually mean faster transactions, improved transparency, and new opportunities to earn digital asset rewards. For the financial industry, it demonstrates a path toward merging regulated stablecoins with mainstream payment systems, potentially reducing friction in both domestic and international settlements.
As blockchain adoption accelerates, pilots like this could define the next generation of financial infrastructure, where traditional banking and digital assets coexist seamlessly.
Conclusion
Mastercard’s RLUSD stablecoin pilot on the XRP Ledger is a landmark initiative that combines regulatory compliance with the speed and efficiency of blockchain. By leveraging Ripple, Gemini, and WebBank, Mastercard is testing the potential for real-time credit card settlement using a stablecoin, a development that could reshape payments as we know them. If successful, this could mark the beginning of a new era where digital assets and traditional financial networks operate hand-in-hand, benefiting both consumers and institutions worldwide.
hokanews.com – Not Just Crypto News. It’s Crypto Culture.
