A significant partnership has been established, as announced on Thursday, to explore the application of Ripple’s stablecoin (RLUSD) on the XRPL blockchain. This collaboration aims to support the settlement of fiat card transactions using stablecoins and facilitate blockchain-based settlement processes between Mastercard and WebBank, the institution that issues the Gemini Credit Card.
Sherri Haymond, global head of digital commercialization at Mastercard, emphasized the importance of this collaboration, stating that it harnesses their global payments network to integrate regulated, open-loop stablecoin payments into mainstream finance. She highlighted the partnership’s commitment to consumer choice and regulatory compliance, paving the way for stablecoins to play a crucial role in future financial applications.
This initiative is particularly notable as it represents one of the first instances where a regulated U.S. bank will use a regulated stablecoin on a public blockchain to settle traditional card transactions. This builds on the foundation laid by Ripple’s previous collaborations with Gemini and WebBank, particularly concerning the XRP edition of the Gemini Credit Card that was introduced earlier in the year.
Jason Lloyd, president and CEO of WebBank, remarked on the unique positioning of banks to merge innovative blockchain technology with the reliability of traditional financial systems. The partnership is expected to enhance the efficiency and security of institutional payments through the use of stablecoins like RLUSD.
The collaboration follows Ripple’s announcement of achieving a $40 billion valuation after securing a $500 million investment. Ripple’s CEO, Brad Garlinghouse, noted that this investment is indicative of the momentum Ripple is experiencing and the endorsement of its market potential by top financial institutions. He reflected on Ripple’s evolution since its inception in 2012, noting its expansion from payments into areas such as custody, stablecoins, prime brokerage, and corporate treasury services through the use of digital assets like XRP.
In related industry insights, Tanner Taddeo, CEO of Stable Sea, highlighted the advantages that stablecoins offer in enterprise finance, including the potential for near-instant settlement, lower costs, and global reach. Taddeo elaborated on the current limitations of traditional payment methods, noting that transferring substantial sums across borders can take days, while stablecoin transactions can settle in just a few hours. He encouraged businesses to explore various applications of stablecoins, suggesting the formation of dedicated teams to pilot these use cases.
