A simple credit card swipe feels instant, doesn’t it? You tap, you go, and the coffee is yours. But behind that quick transaction, money often takes a leisurely stroll. Days, sometimes. Now, some big names are looking to change that slow walk into a sprint.
- Ripple, in partnership with Mastercard, WebBank, and Gemini, is testing the use of its stablecoin, RLUSD, to settle credit card transactions on a public blockchain. This initiative aims to significantly speed up the traditional payment settlement process.
- The pilot leverages the XRP Ledger (XRPL) and RLUSD, a U.S. dollar-backed stablecoin issued under a New York Trust Charter, to explore faster, more efficient, and compliant traditional finance transactions.
- If successful, this pilot could establish a new blueprint for blockchain-based settlement in card programs, potentially making cross-border payments faster and more cost-effective by reducing reliance on slower, traditional settlement rails.
Ripple, the company behind the XRP Ledger, just announced a significant test. They are teaming up with Mastercard, WebBank, and the crypto exchange Gemini. Their goal is to use Ripple’s own stablecoin, RLUSD, to settle credit card transactions. All of this happens on a public blockchain.
This news broke at Ripple’s Swell 2025 event. It points to a clear ambition. The partners want to show how regulated stablecoins can make traditional finance faster and more efficient. They also want to keep things safe and compliant. That’s a big ask in the world of money.
At the heart of this pilot sits the XRP Ledger (XRPL). This is Ripple’s decentralized payments network. Then there is RLUSD, Ripple’s U.S. dollar-backed stablecoin. Ripple launched RLUSD in December 2024 under a New York Trust Charter.
RLUSD is not just any digital token. It is fully backed by cash and cash equivalents. Ripple reports it has already passed $1 billion in circulation. That’s a serious amount of digital dollars moving around.
The Engine Room of Finance Gets an Upgrade
WebBank is playing a key part. They issue the Gemini Credit Card. In this test, WebBank will explore settling Mastercard transactions. They will use RLUSD on the XRPL. This is where the rubber meets the road for traditional card payments.
If this pilot works, it marks a notable first. It could be one of the first times a regulated U.S. bank settles traditional card payments. And it would do so using a regulated stablecoin on a public blockchain. That’s a mouthful, but it means a lot for the future.
The companies will start onboarding RLUSD to the XRPL in the coming months. Regulatory approvals are still needed, of course. If successful, this effort could become a blueprint. Other card programs might then look to blockchain-based settlement.
Monica Long, Ripple’s president, put it simply. “The goal is to bring blockchain speed and efficiency into the back-end of a payment flow consumers already know — swiping a credit card,” she said. It is about making the invisible parts of finance better.
Think about how banks move money today. It often uses older, slower settlement rails. These systems can be expensive, too. A credit card transaction might take one to three days to clear. That is between a merchant’s bank and the card issuer.
A stablecoin like RLUSD offers a different path. It could move funds nearly instantly. This is especially true for transactions across borders. Imagine the difference that makes for businesses and consumers. No more waiting games.
The term “regulated stablecoin” carries real weight here. For large financial institutions, compliance is everything. They cannot just use any digital token. A stablecoin like RLUSD, operating under a New York Trust Charter, offers that crucial layer of trust. It means it operates within established legal frameworks.
This trust comes from its backing. Full backing by cash and cash equivalents means its value stays pegged to the U.S. dollar. This stability is vital for settlements. No bank wants to settle a transaction only to see the asset’s value swing wildly. That would defeat the purpose.
And then there is the public blockchain part. The XRP Ledger is a decentralized network. This means transparency and immutability. Transactions are recorded for all to see, though often pseudonymously. This contrasts with the opaque, private ledgers many banks use. It is a step into a more open financial future.
Mastercard is no stranger to stablecoins. They have explored digital asset payments before. This project fits into their bigger plan. They want to integrate regulated digital assets into their global network. They are not just dipping a toe in the water.
This is also not the first dance for Gemini and Ripple. They worked together earlier this year. That collaboration resulted in an “XRP edition” of the Gemini Credit Card. It shows a history of partnership.
This pilot is more than just a tech test. It signals a shift in how major financial players view blockchain. They are moving past the hype. They are looking at practical applications that solve real-world problems. The back-end of finance might not be glamorous, but it is where the real work happens.
Consider the global scale. Cross-border payments are notoriously slow and expensive. They often involve multiple intermediary banks. Each step adds time and cost. A stablecoin settlement on a public blockchain could cut through much of that friction. It could make international trade smoother.
For businesses, this means faster access to funds. It means less capital tied up in transit. For consumers, it might not be immediately visible. But it could lead to lower fees or faster resolution of disputes. The benefits ripple outwards, quietly changing how we move money.
