Ripple has expanded its presence in the global payments sector through Mastercard, Gemini, and WebBank to test stablecoin use for credit card settlements. The pilot program will leverage Ripple’s RLUSD stablecoin and the XRP Ledger for faster, more efficient transactions.
What to Know:
- Ripple partners with Mastercard, Gemini, and WebBank to test stablecoin use for credit card settlements.
- The pilot program will leverage Ripple’s RLUSD stablecoin and the XRP Ledger for faster, more efficient transactions.
- This initiative aims to demonstrate how regulated stablecoins can enhance traditional financial infrastructure while maintaining compliance.
Ripple is spearheading a new initiative to explore the use of its RLUSD stablecoin for settling fiat credit card transactions, collaborating with Mastercard, WebBank, and Gemini. The project aims to leverage blockchain technology to streamline conventional financial processes. This collaboration could mark a significant step towards integrating digital assets into mainstream finance.
At the core of this project is the XRP Ledger (XRPL) and RLUSD, Ripple’s U.S. dollar-backed stablecoin, introduced in December 2024. WebBank, the issuer of the Gemini Credit Card, will explore settling Mastercard transactions using RLUSD on the XRPL during the pilot phase. This represents a potentially groundbreaking application of regulated stablecoins in traditional banking operations.
The anticipated benefits of this system include faster transaction speeds and reduced costs. By using RLUSD, settlement times could decrease from one to three days to near-instantaneous, particularly for cross-border transactions. This efficiency could significantly improve the overall payment processing ecosystem.
Mastercard’s involvement underscores its commitment to integrating regulated digital assets into its global network. Pending regulatory approvals, the companies plan to onboard RLUSD to the XRPL in the coming months. If successful, this initiative could serve as a blueprint for other card programs exploring blockchain-based settlement solutions.
This collaboration between Ripple, Mastercard, Gemini, and WebBank demonstrates the potential of stablecoins to modernize and enhance existing financial infrastructure. By leveraging the XRP Ledger and RLUSD, the pilot program aims to bring greater efficiency and speed to credit card transactions, setting a precedent for future innovations in the financial industry.
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Source: Original article
Quick Summary
Ripple partners with Mastercard, Gemini, and WebBank to test stablecoin use for credit card settlements. The pilot program will leverage Ripple’s RLUSD stablecoin and the XRP Ledger for faster, more efficient transactions. This initiative aims to demonstrate how regulated stablecoins can enhance traditional financial infrastructure while maintaining compliance.
Source
Information sourced from official Ripple publications, institutional research, regulatory documentation and reputable crypto news outlets.
Author
Ripple Van Winkle is a cryptocurrency analyst and founder of XRP Right Now. He has been active in the crypto space for over 8 years and has generated more than 25 million views across YouTube covering XRP daily.
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