The collaboration will explore using Ripple’s RLUSD stablecoin on the XRP Ledger to process Gemini Credit Card transactions.
Ripple on Wednesday announced a collaboration with Mastercard, WebBank, and global crypto platform Gemini to explore using its U.S. dollar-backed stablecoin, RLUSD, for settling transactions on the Gemini Credit Card.
The project aims to test using RLUSD on the XRP Ledger (XRPL) to process payments between Mastercard and WebBank, the card issuer, according to a press release viewed by The Defiant.
RLUSD currently has a market capitalization of over $1 billion, according to DeFiLlama data. Around 80% is on Ethereum and 20% on XRPL, which currently has a total value locked (TVL) of over $77.7 million.
If all goes as planned, this would mark one of the first instances of a regulated U.S. bank settling traditional card transactions with a regulated stablecoin on a public blockchain, the release noted.
“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. “Guided by our commitment to consumer choice and a principled approach to blockchain—one that emphasizes strong consumer protections, a level playing field, and full regulatory compliance—we’re enabling settlement today while exploring how stablecoins can support future use cases.”
The initiative continues Ripple’s work with the Gemini Credit Card, which launched an XRP edition earlier this year. The teams say the initiative could highlight how stablecoins enable faster, more efficient payments – while still meeting regulatory requirements.
Currently, stablecoins are a $306 billion industry, with market cap growing by 47% since the start of the year, per DeFiLlama. Tether’s USDT maintains a market share of 60% with a market capitalization of over $183 billion.
RLUSD was approved by the New York Department of Financial Services (NYDFS) late last year and is fully backed by cash and cash-equivalent reserves. The XRPL, which uses XRP as its native token, will serve as the settlement platform. XRP is currently trading at $2.28, up 1.2% on the day, according to The Defiant’s price page.
Next steps include onboarding RLUSD on the XRPL in the coming months, pending regulatory approval, and integrating it into Mastercard and WebBank’s settlement processes.
News of the partnership comes just hours after Ripple announced a $500 million strategic investment earlier today, led by affiliates of Fortress Investment Group and Citadel Securities, valuing the company at $40 billion.
Other investors include Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace.
“This investment reflects both Ripple’s incredible momentum and further validation of the market opportunity we’re aggressively pursuing by some of the most trusted financial institutions in the world,” said Ripple CEO Brad Garlinghouse at the time of the announcement.
