Mastercard partners with Ripple and Gemini to test stablecoin RLUSD on XRPL network for credit card clearing, marking a breakthrough in public blockchain applications.
Mastercard has announced a strategic partnership with Ripple and digital asset exchange Gemini to test the use of the RLUSD stablecoin on the XRP Ledger network for clearing fiat card transactions. This will be one of the first instances of a regulated U.S. bank clearing traditional card payments using a stablecoin on a public blockchain, according to a joint statement released Wednesday.
The move reflects a growing trend in the financial industry as major payment institutions look to leverage blockchain technology to improve efficiency and reduce operating costs. XRP Ledger is an open-source blockchain specifically designed to optimize cross-border payments and speed up transaction processing, with Ripple Vai as the network’s primary operator and representative.
Gemini, the digital asset trading platform founded by brothers Cameron and Tyler Winklevoss in 2014, is now offering an XRP credit card issued through WebBank. The bank also joined the RLUSD payment initiative announced the same day, demonstrating multi-faceted coordination between stakeholders in the digital financial ecosystem.
Expanding the application of digital assets in daily payments
Gemini CFO Dan Chen emphasized that the company’s credit card is advancing the way digital assets are integrated into users’ everyday spending. Last month, Gemini launched the “Solana Edition” of its credit card, which offers up to 4% of purchases back in Token rewards, demonstrating its efforts to expand its user base through digital asset-enabled card products.
Many digital asset platforms are now looking to increase their trading revenue and attract new customers by issuing debit and credit cards that allow for everyday payments using crypto assets. This strategy not only helps these platforms increase convenience but also creates a bridge between the world of traditional finance and digital assets.
Mastercard’s partnerships with digital asset technology providers are expanding significantly. In June of this year, Mastercard partnered with Chainlink to enable consumers to purchase cryptoassets directly on- chain through a secure fiat-to-crypto conversion mechanism.
Also on Wednesday, Mastercard announced a partnership with Humanity Protocol, a digital identity solutions provider, to enable users to access financial services such as credit and loans through open financial technology integrated on the platform.
