Ripple Teams With Mastercard, Gemini to Use RLUSD to Settle Credit Card Transactions

Ripple is joining Mastercard, WebBank and Gemini in exploring the use of its dollar-backed stablecoin RLUSD in settling fiat credit card transactions on the XRP Ledger, the firm announced on Wednesday.

Pending regulatory approval, the partners aim to kickstart RLUSD onboarding in the coming months, followed by planning integration into the settlement processes of Mastercard and WebBank, the issuer of the Gemini Credit Card.

“Regulatory approval is a key part of this effort, and it’s something we take seriously,” said a Ripple spokesperson. Decrypt.

“Because this initiative involves a US regulated bank and a stablecoin establishment, it will only move forward once the necessary approvals are in place. The regulatory process will guide the timing, and the partners are aligned on advancing this initiative responsibly and in full compliance with all applicable frameworks.”

The financial services company teamed up with Gemini and WebBank earlier this year with the debut of an XRP version of the Gemini Credit Card. Unlike traditional credit cards that offer points or cash back to users, the card provides users with Ripple-linked XRP token rewards for every purchase.

In the latest initiative, credit card transactions from all Gemini credit cards, including theirs Bitcoin and Solana versions, could also use the RLUSD settlement on the XRPL.

“Stablecoin settlement on XRPL has the potential to make the settlement process even faster and more flexible,” a Ripple spokesperson said. Decrypt.

“Using RLUSD, banks and networks will be able to move funds in almost real time, improving liquidity management and visibility in the system. It’s about enhancing how money moves between trusted partners, making the process more efficient, without changing the way people pay,” they added.

of Ripple RLUSD started last December on Ethereum and the XRP Ledger and has grown to just over a $1 billion market cap according to DefiLlama, making it the 11th largest stablecoin by market capitalization.

In September, the dollar token was integrated into the Securitize platformexpanding its potential use in institutional settings such as in the exchange of tokenized money market funds.

The stablecoin is regulated by the New York Department of Financial Services (NYDFS) and is primarily held by BNY Mellon.

Ripple has raised $500 million at a $40 billion valuation the firm announced on Wednesday. The Ripple-linked XRP token is down 2.6% in the last 24 hours, trading at $2.26.