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Mastercard has teamed up with Ripple and Gemini to launch a pilot that could change how credit card payments are settled. The project will use Ripple’s RLUSD stablecoin on the XRP Ledger to move funds instantly instead of through traditional bank networks.
The Gemini credit card, issued by WebBank, will connect directly to this blockchain settlement system. Instead of the usual one-to-three-day clearing process, transactions could close in seconds. The pilot is scheduled to begin once regulators give final clearance and all partners are onboarded.
For Mastercard, the move signals a deeper interest in stablecoins that meet regulatory standards while working within its existing payment rails. The collaboration combines blockchain speed with traditional banking oversight.
RLUSD is Ripple’s US dollar-backed stablecoin launched in December 2024 under New York’s Trust Charter. Each token is fully backed by cash and short-term equivalents held in segregated accounts. This structure provides the kind of transparency and security demanded by major financial players.
The token’s circulation already exceeds $1 billion, pointing to strong institutional adoption. Under this pilot, WebBank will test RLUSD to settle Mastercard transactions processed through Gemini’s credit card program. If it works as intended, it could be the first time a regulated US bank uses a public blockchain for fiat-based settlement.
That shift would connect traditional finance with blockchain technology in a way not previously seen. Every transaction could become traceable and nearly instant, cutting costs for merchants and reducing delays for banks. It also offers a clearer view of fund movement across payment systems.
When a cardholder swipes a Gemini Mastercard, funds would move in RLUSD through the XRP Ledger rather than through delayed bank settlements. This can shorten payment cycles, increase liquidity, and enhance trust across the network.
The trial remains in its early stage and faces several hurdles. RLUSD must hold enough liquidity to support live transaction volumes, while the XRP Ledger must link smoothly with Mastercard’s infrastructure. Regulators will also review the design to ensure it meets compliance and consumer protection standards.
Success will depend on how seamlessly Ripple, Mastercard, Gemini, and WebBank can align their systems. Each step must balance innovation with operational safety. The effort’s results could influence how traditional payment providers view blockchain settlements.
Could this partnership redefine how card networks move digital dollars? The outcome may shape future payment models for banks, merchants, and customers worldwide.
While this doesn’t mean every Mastercard payment will soon move on blockchain, the test shows how close that future might be. It represents a practical bridge between digital assets and regulated finance - one that blends blockchain efficiency with financial discipline.
The Mastercard, Ripple, and Gemini pilot represents a major step toward faster and more transparent blockchain settlements using the RLUSD stablecoin on the XRP Ledger. If successful, it could redefine how financial institutions process digital payments across regulated systems.
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