Ripple Teams with Mastercard, Gemini on Stablecoin Credit Card Settlement

The partnership brings together traditional finance heavyweights with cryptocurrency innovators in a carefully structured initiative that prioritizes regulatory compliance. RLUSD, Ripple’s dollar-backed stablecoin regulated by the New York Department of Financial Services (NYDFS), would serve as the settlement mechanism for fiat credit card transactions processed through Mastercard’s network and WebBank’s credit card issuance. The involvement of WebBank, a regulated U.S. bank, necessitates thorough regulatory review before implementation can proceed.

A Ripple spokesperson emphasized the regulatory focus, stating: “Regulatory approval is a key part of this effort, and it’s something we take seriously. Because this initiative involves a regulated U.S. bank and stablecoin settlement, it will move forward only once the necessary approvals are in place.” This cautious approach reflects the partners’ commitment to advancing the initiative responsibly within established financial frameworks, with regulatory processes guiding the timing of implementation.

The proposed settlement system would leverage the XRP Ledger (XRPL) to process transactions from all Gemini Credit Card versions, including Bitcoin, Solana, and the recently launched XRP rewards card. Unlike traditional settlement systems that can take days to clear, stablecoin settlement on the XRPL offers near real-time fund movement, potentially revolutionizing how credit card transactions are processed behind the scenes.

According to Ripple, using RLUSD for settlement would improve liquidity management and system visibility while maintaining the familiar consumer payment experience. “Stablecoin settlement on the XRPL has the potential to make the settlement process even faster and more flexible,” the Ripple spokesperson explained. “By using RLUSD, banks and networks could move funds in near real time… It’s about enhancing how money moves between trusted partners, making the process more efficient, without changing how people pay.”

RLUSD, which launched last December on both Ethereum and the XRP Ledger, has rapidly grown to achieve a market capitalization exceeding $1 billion, making it the 11th largest stablecoin according to DefiLlama data. The stablecoin’s primary custodian is BNY Mellon, adding institutional credibility to its operations. This growth trajectory positions RLUSD as a significant player in the stablecoin market, particularly for regulated financial applications.

The stablecoin’s institutional adoption continues to expand, with September’s integration into Securitize’s platform enabling its use in tokenized money market fund exchanges. This institutional focus, combined with NYDFS regulation and BNY Mellon custody, makes RLUSD particularly suited for the proposed credit card settlement system with Mastercard and WebBank.

This latest initiative builds upon Ripple’s existing relationship with Gemini and WebBank, which earlier this year resulted in the launch of an XRP version of the Gemini Credit Card. Unlike traditional credit cards that offer points or cash back, this card provides users with XRP token rewards on every purchase, creating a direct connection between cryptocurrency and everyday spending.

The partnership announcement coincided with Ripple revealing a $500 million funding round at a $40 billion valuation, signaling strong investor confidence in the company’s expanding financial infrastructure projects. While the XRP token experienced a 2.6% decline to $2.26 in the 24 hours following the announcement, the broader market implications of this partnership extend beyond short-term price movements.