Ripple has forged a new partnership with Mastercard, WebBank, and Gemini aimed at testing the RLUSD stablecoin for payments. This collaboration will leverage Ripple’s XRPL platform to evaluate its capability for real-time fiat card settlements, highlighting the potential of blockchain technology in mainstream financial transactions.
The integration of Ripple’s technology with Mastercard intends to facilitate on-chain settlements for fiat card payments. This initiative will investigate the performance of RLUSD within Mastercard’s extensive global payment network while focusing on compliance and operational integrity for regulated financial institutions. The companies expect this collaboration to yield fast and transparent settlements catering to institutions involved.
Sherri Haymond, Global Head of Digital Commercialization at Mastercard, articulated the partnership’s ambitions, stating, “Through our partnerships with Ripple, Gemini, and WebBank, we’re using our global payments network to bring regulated, open-loop stablecoin payments into the financial mainstream.” Mastercard recognizes stablecoins as a potential avenue for secure and compliant transaction layers for banks and issuers.
The RLUSD stablecoin will serve as a foundational element of this pilot program, facilitating financial transactions between Mastercard and WebBank, the latter acting as the issuer for the Gemini credit card involved in the trial. This initiative marks a significant step as it utilizes a regulated on-chain stablecoin for fiat settlement for the first time. Currently, the RLUSD token boasts a total supply of $2 billion, with its market presence steadily increasing. Ripple aims to position RLUSD as a dependable digital asset for institutional transactions, emphasizing compliance and long-term stability.
Jason Lloyd, President and CEO of WebBank, highlighted the unique role banks play in integrating innovative blockchain technologies with traditional financial systems. WebBank will oversee settlement functions throughout the testing phase, ensuring that regulatory oversight is upheld.
The XRPL platform is designed to process transactions efficiently, capable of handling up to 1,500 transactions per second at minimal costs. The trial will assess the platform’s performance in delivering institutional-grade payment solutions. Ripple President Monica Long commented on the potential of regulated stablecoins like RLUSD to enhance financial settlement systems. She articulated Ripple’s commitment to expanding the institutional role of XRPL through innovation driven by compliance.
Currently, the XRPL network accommodates about 7,000 active wallets daily, and Ripple continues to maintain its XRP asset among the top 10 cryptocurrencies by market value. Following a period of recovery, XRP is trading at $2.31, reflecting continued market interest.
However, before the full deployment of RLUSD can occur, regulatory approval is necessary. Ripple and its partners are prepared to coordinate settlement processes once they secure the requisite endorsements. This trial represents a pioneering collaboration between a regulated U.S. bank and an on-chain settlement network, marking a significant advancement in the intersection of blockchain technology and traditional finance.
