In a groundbreaking collaboration, Ripple has joined forces with Mastercard, WebBank, and Gemini to explore the application of its RLUSD stablecoin for settling transactions on the Gemini Credit Card. This project aims to assess the viability of using RLUSD on the XRP Ledger (XRPL) to facilitate payments between Mastercard and WebBank, the card issuer.
According to a press release, RLUSD, which boasts a market capitalization exceeding $1 billion, plays a crucial role in this initiative. Currently, approximately 80% of RLUSD is on the Ethereum network, while about 20% resides on the XRPL, which has a total value locked (TVL) exceeding $77.7 million. This exploration marks a significant step toward potentially being one of the first instances where a regulated U.S. bank engages in card transaction settlements with a regulated stablecoin on a public blockchain.
Sherri Haymond, Global Head of Digital Commercialization at Mastercard, noted, “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.” She emphasized the importance of consumer choice and a principled blockchain approach, which includes strong consumer protections and full regulatory compliance.
This initiative follows Ripple’s earlier work with the Gemini Credit Card, which launched an XRP edition earlier this year. The collaboration aims to showcase how stablecoins can facilitate speedy and efficient payments while adhering to regulatory requirements. The stablecoin market is currently valued at approximately $306 billion, reflecting a 47% growth since the start of the year, as reported by DeFiLlama. Tether’s USDT continues to dominate the market with a 60% share and a market cap of over $183 billion.
RLUSD secured approval from the New York Department of Financial Services (NYDFS) last year and is fully backed by cash and cash-equivalent reserves. The XRPL leverages XRP as its native token and is poised to be the platform for settlement. XRP’s current trading price stands at $2.28, reflecting a 1.2% increase on the day.
The next steps involve onboarding RLUSD onto the XRPL within the upcoming months, subject to regulatory approval, and integrating the stablecoin into Mastercard and WebBank’s settlement processes.
This announcement follows Ripple’s recent declaration of a $500 million strategic investment, spearheaded by affiliates of Fortress Investment Group and Citadel Securities, which values the company at $40 billion. Ripple CEO Brad Garlinghouse remarked that this investment underscores Ripple’s impressive momentum and the significant market opportunities being pursued in collaboration with trusted financial institutions.
