Ripple Teams With Mastercard, Gemini to Use RLUSD to Settle Credit Card Transactions
Ripple is collaborating with Mastercard, WebBank, and Gemini to integrate its RLUSD stablecoin for fiat credit card transaction settlements on the XRP Ledger. Pending regulatory approvals, the initiative aims to enhance transaction speed and liquidity management, leveraging RLUSD for near real-time fund movement. The RLUSD stablecoin, regulated by NYDFS and valued at over $1 billion in market cap, is also expanding its presence in institutional finance. This collaboration follows the launch of the XRP-integrated Gemini Credit Card earlier this year, which rewards users with XRP tokens. Ripple raised $500 million at a $40 billion valuation.
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Ripple Partners with Major Firms to Explore Stablecoin Integration
Ripple has teamed up with Mastercard, WebBank, and Gemini to explore the use of its dollar-backed RLUSD stablecoin in settling fiat credit card transactions on the XRP Ledger, the company announced on Wednesday. Pending regulatory approvals, the collaboration aims to launch RLUSD onboarding in the coming months. This will be followed by integrating RLUSD within the settlement processes of Mastercard and WebBank, which is the issuer of the Gemini Credit Card.
Regulatory Considerations for RLUSD Integration
According to a Ripple spokesperson, regulatory approvals are crucial to this initiative. “Because this initiative involves a regulated U.S. bank and stablecoin settlement, it will only proceed once the necessary approvals are secured,” they said. The spokesperson emphasized the importance of aligning with all applicable regulatory frameworks, ensuring the initiative moves forward responsibly. The regulatory process will also dictate its timeline, with all partners committed to compliance.
Unique Features of the Gemini Credit Card
Earlier this year, Ripple partnered with Gemini and WebBank to launch an XRP version of the Gemini Credit Card. Unlike traditional credit cards that offer points or cash back, the Gemini Credit Card rewards users with Ripple-linked XRP tokens for every purchase. The new initiative extends this functionality, as credit card transactions across all Gemini Credit Cards—including Bitcoin and Solana versions—could potentially utilize RLUSD for settlement on the XRPL.
Advantages of Stablecoin Settlement on XRPL
A Ripple spokesperson highlighted the benefits of stablecoin settlement on the XRP Ledger. “Stablecoin settlement on the XRPL has the potential to make the settlement process even faster and more flexible,” they stated. By using RLUSD, banks and payment networks can move funds in near real time, improving liquidity management and offering better system-wide visibility. This approach enhances the efficiency of money movement without altering how consumers make payments.
Growth and Regulation of Ripple’s RLUSD Stablecoin
Ripple's RLUSD stablecoin debuted in December on Ethereum and the XRP Ledger. According to DefiLlama, RLUSD has grown to a $1 billion market cap, making it the 11th largest stablecoin by market capitalization. In September, RLUSD was integrated into Securitize's platform, broadening its use cases in institutional settings, such as trading tokenized money market funds. The stablecoin is regulated by the New York Department of Financial Services (NYDFS) and primarily custodied by BNY Mellon.
Ripple's Financial Health and Market Movements
Ripple recently raised $500 million at a valuation of $40 billion, the company revealed on Wednesday. Meanwhile, the XRP token linked to Ripple has seen a 2.6% decline over the last 24 hours and is currently trading at $2.26.