Ripple, Mastercard Test Stablecoin for Credit Card Settlement

WebBank, issuer of the Gemini Credit Card, will use RLUSD to settle Mastercard transactions through the XRPL. If successful, it would be among the first examples of a regulated U.S. bank handling card settlements through a public blockchain using a regulated stablecoin.

Investor Takeaway

How the RLUSD Pilot Works

Under the program, the companies will begin onboarding RLUSD to the XRP Ledger in the coming months, pending regulatory clearance. Ripple said the goal is to use blockchain technology to streamline the existing credit card settlement process, which can take one to three days to finalize through conventional clearing systems.

“The goal is to bring blockchain speed and efficiency into the back-end of a payment flow consumers already know — swiping a credit card,” said Monica Long, Ripple’s president. Using a stablecoin allows near-instant settlement between merchants and card issuers, especially for cross-border transactions that typically involve multiple intermediaries.

Mastercard described the test as part of its effort to into its network. The firm has previously run limited trials using transactions but said this pilot extends those experiments to include a public blockchain and a regulated U.S. stablecoin issuer.

Ripple’s Push Into Regulated Finance

The RLUSD pilot marks Ripple’s most direct move yet into mainstream financial settlement. The company has spent much of the past year working with regulators to establish RLUSD as a compliant, reserve-backed asset. The token is issued under the oversight of the New York Department of Financial Services, with reserves held in cash and short-term Treasuries.

Ripple launched RLUSD to serve as a bridge between blockchain payments and traditional finance, building on its XRP Ledger infrastructure that already supports institutional liquidity products. The firm said RLUSD’s circulation surpassed $1 billion by October 2025, reflecting ahead adoption among platforms, fintechs and payment firms.

For Mastercard, the pilot aligns with its broader digital asset roadmap. The company has been expanding its blockchain programs to test regulated settlement tokens and tokenized bank money, while WebBank’s involvement adds a layer of compliance assurance through its banking charter.

Investor Takeaway

Industry Implications

If adopted at scale, the model could replace or supplement existing payment settlement networks like ACH and SWIFT, especially for international card transactions. Analysts note that blockchain-based settlement could reduce costs for banks and processors while improving transaction traceability. For Ripple, the project provides a proof-of-concept that regulated stablecoins can operate within established financial frameworks rather than competing against them.

The collaboration also comes amid broader moves by traditional finance to . Earlier this year, Visa completed a pilot using USDC for merchant settlements on ETH, while PayPal expanded its PYUSD rollout to cross-border remittances. Ripple’s RLUSD experiment places the firm in the identical conversation as these initiatives but with a public blockchain focus and a regulated banking partner in the U.S.

The companies said results from the pilot will guide discussions with regulators and could inform new settlement standards for card networks. If approved, the framework may open the door for other banks and payment firms to test similar blockchain-based programs within regulated parameters.