In a significant move to bridge traditional finance with blockchain technology, Ripple has partnered with Mastercard, WebBank, and Gemini to test a new payment system. The collaboration aims to integrate Ripple’s stablecoin, RLUSD, into the credit card transaction process, promising to deliver faster and more transparent settlements.

A Strategic Push for Modern Payments

The pilot program introduces the Ripple USD (RLUSD) stablecoin into the Gemini credit card settlement system. This initiative represents a major step in the adoption of blockchain by established financial players and could set a new standard for transaction speed and security. RLUSD, which operates on the XRP Ledger, is designed as a highly regulated solution that complies with existing financial standards.

This partnership seeks to overhaul traditional settlement systems, which often take days to complete and involve multiple intermediaries. By using RLUSD, transactions between card issuers like WebBank and networks like Mastercard can occur almost instantly while upholding all consumer protection and regulatory requirements. It’s a critical development for improving efficiency in institutional payments.

The Regulatory and Integration Roadmap

Before RLUSD can be fully integrated, the project must navigate several key stages. The first involves securing the necessary regulatory approvals to onboard RLUSD to the XRP Ledger, a crucial step to ensure all security and compliance measures are met. Once approved, the technical integration planning will begin.

This phase involves customizing Mastercard and WebBank’s existing workflows to accommodate stablecoin settlements. Ripple and its partners are focused on maintaining strict regulatory compliance and consumer protection throughout the process, ensuring the new system enhances both transaction speed and transparency.

Early Success and Market Impact

Since its launch in late 2024, RLUSD has already achieved a circulation of over $1 billion, signaling strong market confidence in stablecoins for institutional payments. Gemini’s involvement highlights the growing potential for digital assets to support real-world consumer transactions beyond cryptocurrency trading platforms.

The use of RLUSD for credit card settlements marks an important evolution in digital payments, demonstrating how blockchain can be integrated into legacy financial systems without disrupting the end-user experience. Ripple and its partners hope this pilot will encourage more card programs to explore stablecoin settlements, accelerating the financial industry’s shift toward faster and more efficient payment solutions.