What to Know:
- Ripple is partnering with Mastercard, WebBank, and Gemini to explore using its RLUSD stablecoin for settlements.
- The initiative aims to enable blockchain-based payments between Mastercard and WebBank using RLUSD on the XRP Ledger (XRPL).
- This collaboration marks a significant step toward integrating regulated stablecoins into mainstream finance, pending regulatory approval.
Ripple is collaborating with financial giants Mastercard, WebBank, and Gemini to explore the utility of its RLUSD stablecoin within the established financial system. This initiative focuses on enabling settlements using Ripple USD (RLUSD) for payments between Mastercard and WebBank, leveraging the XRP Ledger (XRPL). The move signals a growing interest in integrating blockchain technology with traditional finance.
Mastercard’s Sherri Haymond emphasized the company’s commitment to bringing regulated stablecoin payments into the financial mainstream.
“Guided by our commitment to consumer choice and a principled approach to stablecoins, one that emphasizes strong consumer protections, a level playing field, and full regulatory compliance, we’re enabling settlement today while exploring how stablecoins can support future use cases,” she noted.
This collaboration could be one of the first instances where a regulated U.S. bank clears card transactions using a regulated stablecoin on a public blockchain. It builds upon Ripple’s existing partnerships with Gemini and WebBank on the Gemini Credit Card, which previously launched an XRP edition. WebBank CEO Jason Lloyd noted banks are positioned to integrate blockchain tech with traditional finance.
The group plans to begin RLUSD onboarding on XRPL after regulatory approval and will start integration planning within existing Mastercard and WebBank systems. Ripple highlights XRPL’s low costs and rapid processing as ideal for digital transactions. XRP also secures the network and supports efficient transactions as new assets, such as RLUSD, expand their use.
This announcement comes as the XRP Ledger shows growth in network activity with average daily transactions increasing by 8.9% in Q3. The total number of addresses on the network also grew by 6.1% to reach 6.9 million. RLUSD has surpassed a market capitalization of $1 billion, doubling in three months.
The collaboration between Ripple, Mastercard, WebBank, and Gemini represents a significant step towards integrating stablecoins into traditional financial systems. As the industry awaits regulatory approval and further integration, this initiative highlights the potential for blockchain technology to enhance payment efficiencies and expand the utility of digital assets like XRP.
Source: Original article
