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

In brief

Ripple is teaming with Mastercard, WebBank, and Gemini to explore the use of its regulated stablecoin in credit card settlements.
The initiative is currently pending regulatory approval, but aims to get started in the coming months.
RLUSD is a dollar-backed stablecoin and regulated by the New York Department of Financial Services.

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

Pending regulatory approvals, the partners aim to kickstart RLUSD onboarding in the coming months, followed by integration planning within 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,” a Ripple spokesperson told Decrypt.

“Because this initiative involves a regulated U.S. bank and stablecoin settlement, it will move forward only 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 firm joined with Gemini and WebBank earlier this year with the debut of an XRP version of the Gemini Credit Card. Unlike traditional credit cards which offer points or cash back to users, the card provides users with Ripple-linked XRP token rewards on every purchase.

In the latest initiative, credit card transactions from all Gemini Credit Cards, including its Bitcoin and Solana versions, would still potentially use RLUSD settlement on the XRPL.

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

“By using RLUSD, banks and networks could move funds in near real time, improving liquidity management and visibility across the system. It’s about enhancing how money moves between trusted partners, making the process more efficient, without changing how people pay,” they added.

Ripple’s RLUSD started last December on Ethereum and the XRP Ledger and has grown to just more than a $1 billion market cap according to DefiLlama—making it the 11th biggest stablecoin by market capitalization.

In September, the dollar-backed token was integrated into Securitize’s platform, expanding its potential use in institutional settings like in the exchange of tokenized money market funds.

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

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